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DSRO See Designated Self-Regulatory Organization.
Daily Price Limit The maximum price advance or decline from the previous day's settlement price permitted during one trading session, as fixed by the rules of an exchange.
Daily Trading Limit The maximum price range set by the exchange each day for a contract.
Day Order An order that if not executed expires automatically at the end of the trading session on the day it was entered.
Day Trader A speculator who will normally initiate and offset a position within a single trading session.
Day Trading Establishing and offsetting the same futures market position within one day.
Dealer Option A put or call on a physical commodity, not originating on or subject to the rules of an exchange, in which the obligation for performance rests with the writer of the option. Dealer options are normally written by firms handling the underlying commodity and offered to public customers, although the reverse may also be true.
Decision A formal, written judgment or verdict.
Deck The orders for purchase or sale of futures or option contracts held by a floor broker.
Decorum and Attire Action Type A violation arising from an individual's demeanor or attire on an exchange floor.
Default The failure to perform on a futures contract as required by exchange rules, such as a failure to meet a margin call or to make or take a delivery.
Deferred Delivery The distant delivery months in which futures trading is taking place, as distinguished from the nearby futures delivery month.
Deferred Futures The futures contracts that expire during the most distant months. Also called Back Months. See also Forward Purchase or Sale.
Deliverable Grades The standard grades of commodities or instruments listed in the rules of the exchanges that must be met when delivering cash commodities against futures contracts. Grades are often accompanied by a schedule of discounts and premiums allowable for delivery of commodities of lesser or greater quality than the standard called for by the exchange. Also referred to as Contract Grades.
Deliverable Stocks Stocks of commodities located in exchange-approved storage, for which receipts may be used in making delivery on futures contracts. In the cotton trade, the term refers to cotton certified for delivery.
Delivery The tender and receipt of an actual commodity or warehouse receipt or other negotiable instrument covering such commodity, in settlement of a futures contract.
Delivery Date The date on which the commodity or instrument of delivery must be delivered to fulfill the terms of a contract.
Delivery Instrument A document used to effect delivery on a futures contract, such as a warehouse receipt or shipping certificate.
Delivery Month The specified month within which a futures contract matures and can be settled by delivery.
Delivery Notice The written notice given by the seller of his intention to make a delivery against an open short futures position on a particular date. This notice, delivered through the clearing house, is separate and distinct from the warehouse receipt or other instrument that will be used to transfer title.
Delivery Option A provision of a futures contract which provides the short with flexibility in regard to timing, location, quantity, or quality in the delivery process.
Delivery Points Those locations designated by commodity exchanges where stocks of a commodity represented by a futures contract may be delivered in fulfillment of the contract.
Delivery Price The price fixed by the clearing house at which deliveries on futures are invoiced, generally the price at which the futures contract is settled when deliveries are made.
Delta A measure of how much an option premium changes, given a unit change in the underlying futures price. Delta often is interpreted as the probability that the option will be in-the-money by expiration.
Delta Margining An option margining system used by some exchanges for exchange members and/or floor traders which equates the changes in option premiums with the changes in the price of the underlying futures contract or physical commodity.
Delta Value The expected change in an option's price given a one-unit change in the price of the underlying futures contract.
Demand A claim filed by a claimant against a respondent on the form provided by NFA.
Deposit The initial outlay required by a broker of a client to open a futures position, returnable upon liquidation of that position.
Deposition The pre-trial testimony of a witness given out of court with no judge present. The witness is placed under oath to tell the truth and lawyers for each party may ask questions.
Derivative A financial instrument, traded on or off an exchange, the price of which is directly dependent upon the value of one or more of the underlying securities, commodities, other derivative instruments, or any agreed-upon pricing index or arrangement.
Designated Self Regulatory Organization (DSRO) When a futures commission merchant (FCM) is a member of more than one Self-Regulatory Organization (SRO), the SROs may decide among themselves which of them will be primarily responsible for enforcing minimum financial and sales practice requirements. With approval, the SRO will be appointed DSRO for the particular FCM.
Diagonal Spread A spread between two call options or two put options with different strike prices and different expiration dates.
Differentials This discount (premium) allowed for grades or locations of a commodity lower (higher) than the par of basis grade or location specified in the futures contract. See also Allowances.
Directly Crossing Orders A trader acts as both a buyer and seller for orders on a matched transaction.
Directly Taking the Other Side A trader buys and sells his own orders to each other; trading with himself on behalf of others.
Disclosure Document The document that must be provided to and signed by prospective customers of CPOs and CTAs that describes fees, performance, etc.
Discount (1) The amount a price would be reduced to purchase a commodity of lesser grade; (2) sometimes used to refer to the price difference between futures of different delivery months, as in the phrase "July is trading at a discount to May", indicating that the price of the July futures contract is lower than that of May; (3) applied to cash grain prices that are below the futures price. See also Option Premium.
Discount Basis Method of quoting securities where the price is expressed as an annualized discount from maturity value.
Discount Method A method of paying interest by issuing a security at less than par and repaying par value at maturity. The difference between the higher par value and the lower purchase price is the interest.
Discount Rate The interest rate charged in loans by the Federal Reserve Bank.
Discretionary Account An arrangement by which the owner of the account gives written power of attorney to someone else, usually the broker or a commodity trading advisor, to buy and sell without prior approval of the account owner. Often referred to as a Managed Account.
Dismiss In a legal context, to terminate a case without a complete trial.
Dismissal In a legal context, the removal of a case out of the court; the termination of a case without a complete trial.
Dismissal With Prejudice Usually considered an adjudication upon the merits and will operate as a bar to future action.
Dismissal Without Prejudice Usually an indication that the dismissal affects no right or remedy of the parties (i.e., is not on the merits and does not bar a subsequent suit on the same cause of action).
Double Hedging As used by the CFTC, it implies a situation where a trader holds a long position in the futures market in an excess of the speculative limit as an offset to a fixed price sale even though the trader has an ample supply of the commodity on hand to fill all sales commitments.
Dual Trading Dual trading occurs when (1) a floor broker executes customer orders and, on the same day, trades for his own account or an account in which he has an interest.; or (2) a futures commission merchant carries customer accounts and also trades, or permits its employees to trade, in accounts in which it has a proprietary interest, also on the same day.

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