Glossary
Glossary
The Glossary is a growing set of short entries (350-550 words each) for terms used across the site. Each entry defines the term plainly, shows the arithmetic where it helps, and links into the longer articles where the idea matters.
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What Is Notional Value?
Notional value is the full market value a futures contract controls: contract size times price. Why it is far larger than your margin, with worked examples.
Read this first →More in Glossary
What Are Expiration Month Codes?
Futures month codes are single letters, F for January through Z for December, used in contract symbols like ESZ6 or CLF7. The full table and how to read a symbol.
Read the explainer →What Is Basis?
Basis is the difference between the local cash price of a commodity and its futures price. How to read it, why it narrows at expiry, and why it matters to hedgers.
Read the explainer →What Is the Front Month?
The front month is the futures contract closest to expiration, usually the most actively traded. What it means, why it changes, and why it matters for prices.
Read the explainer →What Is Leverage in Futures?
Leverage in futures means controlling a large notional position with a small margin deposit. How to calculate it, why it magnifies losses, and how you can lose more than you put in.
Read the explainer →What Is a Margin Call?
A futures margin call is a demand to add money when your account falls below maintenance margin. How it is triggered, how much you owe, and what happens if you don't pay.
Read the explainer →What Is Mark-to-Market?
Mark-to-market is the daily process of revaluing every futures position at the settlement price and moving cash between winners and losers. A worked example.
Read the explainer →What Is Open Interest?
Open interest is the number of futures contracts still open at the end of a day. How it differs from volume, how it rises and falls, and what it can and cannot tell you.
Read the explainer →What Is a Settlement Price?
The settlement price is the official end-of-day price an exchange sets for each futures contract. It drives daily margin, P&L and expiry. How it is set and why it matters.
Read the explainer →What Is Tick Size?
Tick size is the smallest price move a futures contract can make, and tick value is what that move is worth in dollars. Examples from CME and the Montreal Exchange.
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