1. Currency: A generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and services, currency is the basis for trade. Some companies might import directly. Some companies might buy imported raw material from a domestic dealer or distributor. The logic applied identically regardless of the method used for import or export.

2. Currency Forward: A forward contract in the forex market that locks in the price at which an entity can buy or sell a currency on a future date. Also known as "outright forward currency transaction", "forward outright" or "FX forward".

3. Forward Discount: A forward discount means the market expects the domestic currency to depreciate against another currency. In a foreign exchange situation where the domestic current spot exchange rate is trading at a higher level then the current domestic futures spot rate for a maturity period. A forward discount is an indication by the market that the current domestic exchange rate is going to depreciate in value against another currency.

4. Futures Contract: A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.

5. Arbitrage Trading Program – ATP: A program used to place simultaneous orders for stock index futures and the underlying stocks. The ATP attempts to exploit price variations (market arbitrage). The term is better known as program trading.

6. Arbitrage: The simultaneous purchase and sale of an asset in order to profit from a difference in the price. This usually takes place on different exchanges or marketplaces. Also known as a "riskless profit".

7. Hedge: Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.

8. Actuals: The physical commodity that underlies a futures contract or is traded in the physical market. This is the homogeneous commodity that is the basis for trade, either through the physical market or a derivative contract such as oil, corn or gold.

9. Adjusted Exercise Price: An option's strike price after adjustments have been made for stock splits to its underlying security.

10. Aggregate Exercise Price: The strike price of a put or call option multiplied by its contract size. Aggregate exercise prices are used to determine the dollar amount required should the option be exercised.

11. Alligator Spread: An unprofitable spread regardless of favorable market movements and due to large commissions charged upon the transactions. An alligator spread is usually used in the options market to describe a collection of put and call options that may not be profitable.

12. Allocation Notice: An official notification from an options clearing firm to the writer of an option that the current option holder has exercised and, therefore, the writer must produce the underlying security. This may require the option's writer to purchase or sell securities on the open market to fulfill the contractual obligation.

13. American Option: An option that can be exercised anytime during its life. The majority of exchange-traded options are American.

14. Annapurna Option: A form of option contract from the "mountain range" series of exotic options. Annapurna options offer a combination of a fixed coupon rate and participation in the equity gains of an underlying basket of securities. The coupon rate is dependent on when the worst-performing stock of the group falls below a pre-specified level. The longer it takes for the worst-performing stock to reach the predetermined low point, the higher the coupon payment the investor will receive.

15. Asian Option: An option whose payoff depends on the average price of the underlying asset over a certain period of time as opposed to at maturity. Also known as an average option. This type of option contract is attractive because it tends to cost less than regular American options.

16. Asian Tail: An option feature whereby a reference price is activated at the end of an option should the underlying fall below a specified average before option expiry.

17. Asset-or-Nothing Call Option: An option payoff that is equal to the asset's price if the asset is above the strike price, otherwise the payoff is zero.

18. Asset-or-Nothing Put Option: An option payoff that is equal to the asset's price if the asset is below the strike price, otherwise the payoff is zero.

19. Assign: The act of clearing houses and brokerages selecting short option and future contract holders to deliver underlying securities or commodities of maturing or exercised/tendered contracts.

20. Assignable Contract: A futures contract with a provision permitting the contract holder to convey his or her rights of assignment to a third party. This enables the contract holder to assign the rights and obligations of a contract to another to perform and receive the benefits of that contract before it closes.

21. Assignment:The transfer of an individual's rights or property to another person or business or A notice received by an option writer stating that the option sold has been exercised by the purchaser of the option.

22. At the Money: An option is at-the-money if the strike price of the option equals the market price of the underlying security.