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PBOT Philadelphia Board of Trade
Par The face value of a security.
Pardon A remission of punishment or penalty without indicating exoneration from guilt.
Partnership An association of two or more people who agree to share in the profits and losses of a business venture.
Party A claimant or respondent.
Pegged Price The price at which a commodity has been fixed by agreement.
Pegging Effecting commodity transactions to offset a decline in the price of the commodity so that previously written put options will expire worthless, thus protecting premiums previously received.
Performance Bond Funds that must be deposited as a performance bond by a customer with his or her broker, by a broker with a clearing member or by a clearing member, with the Clearing House. The performance bond helps to ensure the financial integrity of brokers, clearing members and the exchange as a whole.
Performance Bond Call A demand for additional funds because of an adverse price movement.
Permanent Injunction A final order of the court requiring a party to do something, or to refrain from doing or continuing to do a particular act or activity.
Permanently Enjoin To command or instruct with authority; to abate, suspend or restrain. For example, following a hearing, one may be "permanently enjoined" or commanded by a court with equitable powers, either to do a specific act or to refrain from doing a certain act.
Petition A written application to a court asking for specific action to be taken.
Petition for Review A formal written request for review by an appellate body of the proceedings of a lower court or other adjudicative body.
Petition to Stay A formal written request for a judicial order to forbid or hold something in abeyance until some event occurs or the court lifts it order. A request to an appellate body to delay enforcement of a Decision or Final Order that is being appealed.
Pit The area on the trading floor of some exchanges where trading in futures or options contracts is conducted by open outcry.
Pleadings Written statements by the parties of their positions.
Point A measure of price change equal to 1/100 of one cent in most futures traded in decimal units. In grains, it is one cent; in T-bonds, it is one percent of par. See also Tick.
Point Balance A statement prepared by futures commission merchants to show profit or loss on all open contracts by computing them to an official closing or settlement price, usually at calendar month end.
Point and Figure Charts A method of charting which uses prices to form patterns of movement without regard to time. It defines a price trend as a continued movement in one direction until a reversal of a predetermined criterion is met.
Pool See Commodity Pool.
Pool Operator See Commodity Pool Operator.
Position A commitment, either long or short, in the market.
Position Day According to the Chicago Board of Trade rules, the first day in the process of making or taking delivery of the actual commodity on a futures contract. The clearing firm representing the seller notifies the Board of Trade Clearing Corporation that its short customers want to deliver on a futures contract.
Position Limit The maximum number of speculative futures contracts one can hold as determined by the Commodity Futures Trading Commission and/or the exchange where the contract is traded.
Position Trader A trader who either buys or sells contracts and holds them for an extended period of time, as distinguished from a day trader.
Positive Carry The cost of financing a financial instrument (the short-term rate of interest), when the cost is less than the current return of the financial instrument.
Positive Yield Curve See Yield Curve.
Power of Attorney The authority to act legally for another person.
Prearranged Trading Trading between brokers in accordance with an expressed or implied agreement or understanding, which is a violation of the Commodity Exchange Act.
Preliminary Hearing In criminal law, a legal proceeding in which a prosecutor presents evidence to a judge in an attempt to show that there is probable cause that a person committed a crime. If the judge is convinced probable cause exists to charge the person, then the prosecution proceeds to the next phase. If not, the charges are dropped.
Preliminary Injunction A judicial remedy to prevent threatened injury, maintain the status quo, or preserve the subject matter of the litigation during trial.
Premium Refers to (1) the amount a price would be increased to purchase a better quality commodity; or (2) a future delivery month selling at a higher price than another; (3) cash prices that are above the futures price; or (4) the price paid for an option.
Price Discovery The process of determining the price level of a commodity based on supply and demand factors.
Price Limit The maximum advance or decline from the previous day's settlement price permitted for a futures contract in one trading session.
Price Limit Order A customer order that specifies the price at which a trade can be executed.
Primary Dealer A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria. Among the criteria are capital requirements and meaningful participation in the Treasury auctions.
Primary Market (1) For producers, their major purchaser of commodities; (2) in commercial marketing channels, an important center at which spot commodities are concentrated for shipment to terminal markets; and (3) to processors, the market that is the major supplier of their commodity needs.
Principal Means, with respect to an applicant, a registrant, or a person required to be registered under the Act: (1) an individual who is: (A) a proprietor of a sole proprietorship; (B) a general partner of a partnership; (C) a director, president, chief executive officer, chief operating officer, chief financial officer or a person in charge of a business unit, division or function subject to regulation by the Commission of a corporation, limited liability company or limited liability partnership; (D) a manager, managing member or a member vested with the management authority for a limited liability company or limited liability partnership; or (E) a chief compliance officer; or (2) an individual who directly or indirectly, through agreement, holding companies, nominees, trusts or otherwise: (A) is the owner of 10% or more of the outstanding shares of any class of an applicant or registrant's equity securities, other than non-voting securities; (B) is entitled to vote 10% or more of the outstanding shares of any class of an applicant or registrant's equity securities, other than non-voting securities; (C) has the power to sell or direct the sale of 10% or more of the outstanding shares of any class of an applicant or registrant's equity securities, other than non-voting securities; (D) is entitled to receive 10% or more of an applicant or registrant's net profits; (E) or has the power to exercise a controlling influence over an applicant or registrant's activities that are subject to regulation by the Commission; or (3) an entity that: (A) is a general partner of a partnership; or (B) is the direct owner of 10% or more of the outstanding shares of any class of an applicant or registrant's equity securities, other than non-voting securities; or (4) an individual who or entity that: (A) has contributed 10% or more of an applicant's or registrant's capital unless such capital consists of subordinated debt contributed by: (i) an unaffiliated bank insured by the Federal Deposit Insurance Corporation; (ii) an unaffiliated "foreign bank," as defined in 12 CFR 211.21(n) that currently operates an "office of a foreign bank," as defined in 12 CFR 211.21(t), which is licensed under 12 CFR 211.24(a); (iii) such office of an unaffiliated, licensed foreign bank; or (iv) an insurance company subject to regulation by any State, provided such debt is not guaranteed by an individual who or entity that is not a principal of the applicant or registrant.
Pro Se A Latin phrase that means "for himself." A person who represents himself in a legal matter alone without the help of a lawyer is said to appear pro se.
Program Trading The purchase (or sale) of a large number of stocks contained in or comprising a portfolio. Originally called "program" trading when index funds and other institutional investors began to embark on large-scale buying or selling campaigns or "programs" to invest in a manner which replicated a target stock index, the term now also commonly includes computer aided stock market buying or selling programs, portfolio insurance, and index arbitrage.
Project A An electronic trading system for futures and options developed by the Chicago Board of Trade.
Promotional Material Any text of a standardized oral presentation, or any communication for publication in any newspaper, magazine or similar medium, or for broadcast over television, radio, or other electronic medium, which is disseminated or directed to the public concerning a futures account, agreement or transaction; any standardized form of report, letter, circular, memorandum or publication which is disseminated or directed to the public; and any other written material disseminated or directed to the public for the purpose of soliciting a futures account, agreement or transaction.
Proof of Service A court paper filed as evidence that the witness or party to the lawsuit was served with the papers.
Punitive Damages An amount intended to punish outrageous conduct.
Purchase and Sale Statement (P&S) A statement sent by a futures commission merchant to a customer when a futures or options position has been liquidated or offset. The statement shows the number of contracts bought or sold, the prices at which the contracts were bought or sold, the gross profit or loss, the commission charges and the net profit or loss on the transaction. Sometimes combined with a Confirmation Statement.
Put Option An option that gives the option buyer the right, but not the obligation, to sell the underlying futures contract at a particular price on or before a particular date.
Pyramiding The use of unrealized profits on existing futures positions as margin to increase the size of the position, normally in successively smaller increments.

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