| Maintenance Margin |
See maintenance performance bond. |
| Maintenance Margin (performance bond) |
A sum, usually smaller than the initial performance bond, which must remain on deposit in the customer's account for any position. A drop in funds below this level requires a deposit back to initial margin levels. See "performance bond call." |
| Maintenance performance bond |
The minimum equity that must be maintained for each contract in a customer's account subsequent to deposit of the initial performance bond. If the equity drops below this level, a deposit must be made to bring the account back to the initial performance bond level. This is also generally the rate charged to clearing members by CME. Previously referred to as maintenance margin. |
| Margin |
See Performance Bond. |
| Margin Call |
See Performance Bond Call. |
| Mark-to-market |
The daily account adjustment of traders' positions relative to current prices to reflect the value of open positions; resulting in settlement variation debits/credits.Determined by comparing the price of an open position against the closing price of the contract, and then debiting or crediting the traders' accounts accordingly. |
| Market maker |
A firm or person with trading privileges on an exchange who has an obligation to buy when there is an excess of sell orders and to sell when there is an excess of buy orders. In the futures industry, this term is sometimes loosely used to refer to a floor trader or local who, in speculating for his own account, provides a market for commercial users of the market. Occasionally a futures exchange will compensate a person with exchange trading privileges to take on the obligations of a market maker to enhance liquidity in a newly listed or lightly traded futures contract. |
| Market order (MKT) CME Globex |
An order to execute as much of the order as possible at the best current offer price (for buy orders) or bid price (for sell orders). Any remaining quantity becomes a limit order at that price. Market orders will not be accepted before the opening of continuous trading on CME Globex. |
| Market order (MKT) GLOBEX |
An order to execute as much of the order as possible at the best current offer price (for buy orders) or bid price (for sell orders). Any remaining quantity becomes a limit order at that price. Market orders will not be accepted before the opening of continuous trading on GLOBEX. |
| Market order (MKT) Open Outcry |
An order filled immediately at the best price available. |
| Market Order (MO) |
An order submitted at any time within a trading session, executable immediately at the current market price. |
| Market Order at Open (MOO) |
A market order entered before an opening, to be executed at the instrument's opening price only. |
| Market segment |
A part of a market that relates to a place, an exchange authority, a type of security (equity / bond / option / future), and a list of securities with a given set of trading methods. |
| Market value |
The current value of all commodities held in a performance bond account. |
| Market-if-touched (MIT) |
An order that automatically becomes a market order if the price is reached. An MIT order to buy becomes a limit order if and when the instrument trades at a specific or lower trigger price; an MIT order to sell becomes a limit order if and when the instrument trades at a specified or higher trigger price. On CME Globex, this order type is only available via CME Globex Trader, which is scheduled to be decommissioned by the end of 2007. |
| Market-on-close (MOC) |
An order submitted at any time within a trading session, but only executable at closing, at the closing price. |
| Market-on-close (MOC) Open Outcry |
A MOC order can be submitted at any time within a trading session, but only executable at closing, at the closing price. |
| Marketplace |
An organized venue, apart from CME, for the trade of securities, commodities or derivative instruments including, but not limited to, futures, options, options on futures or Security Futures Products. |
| Matched trade |
The execution of the buy and sell orders that together consummate a trade; consists of one or more contracts and occurs when the same price is specified by buy and sells orders, for a specified number of contracts. |
| Maturity |
Period within which a futures contract can be settled by delivery of the actual commodity; the period between the first notice day and the last trading day of a commodity futures contract. |
| Maximum price fluctuation |
The maximum amount the contract price can change up or down during one trading session, as stipulated by exchange rules. Consult CME Clearing contract specifications for specific price limit information. |
| MBF (must be filled, or "at best") |
Order type: Must execute in total against all necessary orders of the opposite side. |
| MDAPI |
Market Data Application Programming Interface, to be used in conjunction with CME's order entry APIs. Employs TIBCO technology. CME developed the Market Data API 1.0, which allows firms to receive real-time market data from the electronic markets, and at a later date, also from the open outcry markets. |
| Member |
An individual admitted to membership on the exchange or any of its Divisions. |
| Member performance bond |
The minimum equity that must be maintained for each contract in a member's account subsequent to deposit of the initial margin. Also see MEMBER RATE. |
| Membership or Membership Interest |
The trading right associated with a Class B Share in any of the following classes: Class B-1 (CME Membership), Class B-2 (IMM Membership), Class B-3 (IOM Membership) and Class B-4 (GEM Membership). A membership or membership interest may only be purchased or sold with its associated Class B Share. |
| Minimum price fluctuation |
The smallest increment of price movement possible in trading a given contract, often referred to as a tick. The minimum unit by which the price of a commodity can fluctuate, as established by the Exchange. |
| Misclear |
The incorrect matching of trades between two brokers or between two clearing firms. |
| MIT (market if touched) |
See "market if touched." |
| ML |
Designates the "Limit Cumulated" display, which depicts the entire depth of the market, expressed in terms of cumulated totals at average prices. |
| MO |
Designates the "Market by Order" display, which illustrates the entire depth of the market, displaying each bid and offer at every price level. |
| MOC (market order at closing) |
See "market order at close." |
| MOO |
Market order at opening; a market order entered before an opening, to be executed at the instrument's opening price only. |
| MOS |
Mutual Offset System; designated order to be given to another exchange (e.g., SGX). |
| Moving average chart |
A chart recording moving averages (three-day, ten-day, etc.) of market prices. |
| Moving averages |
A type of technical analysis using the averages of settlement prices. |
| Mutual |
Mutual |