Glossary

Discretionary Account

See Also:

Broker: Broker is a company or individual that executes futures and options orders on behalf of financial and commercial institutions and/or the general public. A broker charges a fee or commission for executing buy or sell orders for a customer. In commodity futures trading, the term may refer to:
a) a Floor broker, a person who actually executes orders on the trading floor of an exchange;
b) an Account executive or associated person, the person who deals with customers in the offices of futures commission merchants;
c) the futures commission merchant.

Commodity: A commodity, as defined in the Commodity Exchange Act, includes the agricultural commodities enumerated in Section 1a(4) of the Commodity Exchange Act, 7 USC 1a(4), and all other goods and articles, except onions as provided in Public Law 85-839 (7 USC 13-1), a 1958 law that banned futures trading in onions, and all services, rights, and interests in which contracts for future delivery are presently or in the future dealt in.

Commodity Trading Advisor: Commodity Trading Advisor (CTA) is a person who, for compensation (for pay) or profit, directly or indirectly advises others as to the value of commodity futures or the advisability of buying or selling futures or commodity options, or issues analyses or reports concerning commodity futures or options. Providing advice by Commodity Trading Advisor includes exercising trading authority over a customer's account. A Commodity Trading Advisor may be required to be registered with the CFTC (Commodity Futures Trading Commission).

Controlled Account: Controlled Account is an account for which trading is directed by someone other than the owner. Also called a Managed Account or a Discretionary Account.

Range: Range is the difference between the high and low price of a commodity, futures, or option contract during a given period (trading session, week, month, year, etc).

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