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TermDefinition
FB See Floor Broker.
FCM See Futures Commission Merchant.
FOB Free on Board. Indicates that all delivery, inspection and elevation or loading costs involved in putting commodities on board a carrier have been paid.
FT See Floor Trader.
Feed Ratio The relationship of the cost of feed, expressed as a ratio to the sale price of animals, such as the corn-hog ratio. These serve as indicators of the profit margin or lack of profit in feeding animals to market weight.
Felony Serious crime punishable by incarceration for a year or more. Includes offenses such as rape, murder, robbery, burglary and arson.
Fictitious Trading Wash trading, bucketing, cross trading, or other schemes which give the appearance of trading. Actually, no bona fide, competitive trade has occurred.
Fiduciary Duty An obligation to act solely in the best interest of another party. For instance, a corporation's board member has a fiduciary duty to the shareholders, a trustee has a fiduciary duty to the trust's beneficiaries, and an attorney has a fiduciary duty to a client.
Fill or Kill Order A customer order which demands immediate execution or cancellation.
Final Decision A decision of a regulatory organization which cannot be further appealed within the regulatory organization, is not subject to a stay and has not been reversed.
Final Injunction An order of the court requiring a party to do something or refrain from doing or continuing to do a particular act or activity.
Final Order In a registration disqualification proceeding, a Final Order is issued upon resolution of the matter. A Final Order will condition or deny an applicant's registration; or revoke, restrict or suspend a registrant's registration.
Financial Action Type A violation arising from failure to meet financial requirements.
Financial Instrument As used by the CFTC, this term generally refers to any futures or option contract that is not based on an agricultural commodity or a natural resource. It includes currencies, securities, mortgages, commercial paper and stock indexes of various kinds.
Financial and Position Reporting Action Type A violation arising from failure to meet financial reporting requirements or contract position reporting requirements.
First Notice Day The first day on which the notice of intent to deliver a commodity in fulfillment of an expiring futures contract can be given by the clearing house to a buyer. Varies from contract to contract.
Fix or Fixing The settling of the gold price at 10:30 a.m. (first fixing) and 3:00 p.m. (second fixing) in London by five representatives of the London Gold Market.
Fixed Income Security A security whose nominal (or current dollar) yield is fixed or determined with certainty at the time of purchase.
Floor Broker (FB) An individual who executes orders on the trading floor of an exchange for any other person.
Floor Committee A committee empowered by an exchange for the purposes of resolving disputes and supervising the conduct and practices of members and others on the floor of an exchange. The committee may also conduct investigations, hearings and impose fines and other sanctions.
Floor Recordkeeping Action Type A violation arising from failure to make or preserve any record required to be made on the floor of an exchange in connection with the disposition of an order or the execution of a trade.
Floor Trader (FT) Members of an exchange who are personally present, on the trading floors of exchanges, to make trades for themselves. Sometimes called Locals.
Forced Liquidation The situation in which a customer's account is liquidated (open positions are offset) by the brokerage firm holding the account, usually after notification that the account is undercapitalized (margin calls).
Foreign Exchange Foreign currency. On the foreign exchange market, foreign currency is bought and sold for immediate or future delivery.
Foreign Exchange Market Forex market. An over-the-counter market where buyers and sellers conduct foreign exchange business by telephone and other means of communication.
Foreign Futures or Foreign Options Secured Amount The amount of money, securities and property that an FCM must maintain in a separate account to cover or satisfy all of its current obligations to foreign futures or foreign options customers. Such money, securities or property may not be commingled with the money, securities and property of the FCM.
Foreign Terminal Computer terminals placed in the United States by foreign boards of trade. These terminals are used for the purpose of facilitating the trading of products available through those boards of trade.
Forward Contract A contract on which a seller agrees to deliver a specified cash commodity to a buyer sometime in the future. In contrast to futures contracts, the terms of forward contracts are not standardized. Forward contracts are not traded on federally designated exchanges.
Forward Market Refers to informal (non-exchange) trading of commodities to be delivered at a future date. Contracts for forward delivery are personalized (i.e., delivery time and amount are as determined between seller and customer).
Forward Purchase or Sale A purchase or sale between commercial parties of an actual commodity for deferred delivery.
Forwardation See Contango.
Frontrunning A process whereby a futures or options position is taken based on non-public information about an impending transaction in the same or related futures or options contracts.
Full Carrying Charge, Full Carry See Carrying Charge.
Fully Disclosed Account An account carried by a futures commission merchant in the name of the individual customer; the opposite of an Omnibus Account.
Fund of Funds A commodity pool that invests in other commodity pools rather than directly in futures and options contracts.
Fundamental Analysis The study of basic, underlying factors which will affect the supply and demand and hence the price of a futures contract.
Futures Commission Merchant (FCM) An individual or organization which solicits or accepts orders to buy or sell futures or options contracts and accepts money or other assets from customers in connection with such orders. Must be registered with the Commodity Futures Trading Commission.
Futures Contract A legally binding agreement to buy or sell a commodity or financial instrument at a later date. Futures contracts are standardized according to the quality, quantity and delivery time and location for each commodity.
Futures Exchange A central marketplace with established rules and regulations where buyers and sellers meet to trade futures and options on futures contracts.
Futures Industry Association (FIA) The national trade association for futures commission merchants.
Futures Price (1) Commonly held to mean the price of a commodity for future delivery that is traded on a futures exchange; or (2) the price of any futures contract.
 

 
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