Skip Navigation Links

Glossary

| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |

TermDefinition
MACE MidAmerica Commodity Exchange
MGE Minneapolis Grain Exchange
MIDAM MidAmerica Commodity Exchange.
MIT See Market-If-Touched.
MRA See Member Responsibility Action.
Maintenance Margin A set minimum margin (per outstanding futures contract) that a customer must maintain.
Maintenance Performance Bond A sum, usually smaller than, but part of, the initial performance bond, which must be maintained on deposit in the customer's account at all times. If a customer's equity in any futures position drops to, or under, the maintenance performance bond level, a "performance bond call" is issued for the amount of money required to restore the customer's equity in the account to the initial margin level.
Managed Account See Discretionary Account.
Managed Funds Association The trade association for the managed funds industry.
Managed Futures Represents an industry comprised of professional money managers who manage client assets on a discretionary basis, using global futures markets as an investment medium.
Margin An amount of money deposited by both buyers and sellers of futures contracts and by sellers of option contracts to ensure performance of the terms of the contract (the making or taking delivery of the commodity or the cancellation of the position by a subsequent offsetting trade). Margin in futures is not a down payment, as in securities, but rather a performance bond.
Margin Call A call from a clearing house to a clearing member or from a broker or firm to a customer, to bring margin deposits up to a required minimum level.
Mark to Market To debit or credit on a daily basis a margin account based on the close of that day's trading session.
Market Correction In technical analysis, a small reversal in prices following a significant trending period.
Market If Touched (MIT) An order that becomes a market order when a particular price is reached. A sell MIT is placed above the market; a buy MIT is placed below the market. Also referred to as a Board Order.
Market Maker A professional securities dealer 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. By maintaining an offering price sufficiently higher than their buying price, these firms are compensated for the risk involved in allowing their inventory of securities to act as a buffer against temporary order imbalances. In the commodities 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. See also Specialist System.
Market Order An order to buy or sell a futures or options contract at whatever price is obtainable when the order reaches the trading floor.
Market Reporter A person employed by the exchange and located in or near the trading pit who records prices as they occur during trading.
Material Fact A fact that would be important to a reasonable person in deciding whether to engage in a particular transaction; an important fact as distinguished from some unimportant or trivial detail.
Maximum Price Fluctuation See Limit Move.
Mediation A method of alternative dispute resolution in which a neutral third party helps resolve a dispute. The mediator does not have the power to impose a decision on the parties. If a satisfactory resolution cannot be reached, the parties can pursue a lawsuit.
Member Responsibility Action (MRA) An action whereby an NFA member may be summarily suspended from membership, may be required to restrict its operations, or may otherwise be directed to take remedial action when the President of NFA, with the concurrence of the Executive Committee, has reason to believe that the action is necessary to protect the commodity futures markets, customers or other members or associates of NFA. This may be a summary action.
Membership Committee A committee empowered by a self-regulatory organization to review and make judgments on matters pertaining to membership qualification issues. At NFA, the committee that also reviews and makes judgements on matters pertaining to CFTC registration issues.
Membership Denial A non-member is denied exchange or NFA membership; a suspended or expelled member is denied reinstatement of membership privileges; or an explicit limitation is imposed upon the membership rights of a specific exchange or NFA member or group of members.
Membership Denial Action Type The statutory denial of exchange or NFA membership.
Minimum Price Fluctuation Smallest increment of price movement possible in trading a given contract.
Misdemeanor Crime that is punishable by less than one year in jail, such as minor theft and simple assault that does not result in substantial bodily injury.
Mitigating Factors Information about a defendant or the circumstances of a crime that might tend to lessen the sentence for the crime with which the person is charged.
Money Laundering Conduct or acts designed in whole or in part to conceal or disguise the nature, location, source, ownership or control of money (can be currency or equivalents, e.g., checks, electronic transfers, etc.) to avoid a transaction reporting requirement under state or federal law or to disguise the fact that the money was acquired by illegal means.
Money Pass Two traders trading for their personal accounts, execute a buy and a sell with each other at different prices, resulting in a profit for one and a loss for the other.
Motion A request asking a judge to issue a ruling or order on a legal matter.
Motion for Summary Judgment A request made by either party in a civil case. Asserts that the opposing party has raised no genuine issue of fact necessitating a hearing and asks the judge to rule in favor of the moving party based on the law. Typically made before the trial.
Motion to Dismiss In a civil case, a request to a judge by the defendant, asserting that even if all the allegations are true, the plaintiff is not entitled to any legal relief and thus the case should be dismissed.
Moving Average Charts A statistical price analysis method of recognizing different price trends. A moving average is calculated by adding the prices for a predetermined number of days and then dividing by the number of days.
 

 
NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets.