FAQ

Market maker balance - the level of the seller's highest net profit for the option contract closest to expiration.

Option expiration - the moment when the line of the option contract for futures is terminated, after which profit is paid to the holders of “in-the-money options”.

Breakout of the level and fixing the price behind the level - this is the closing of two or more trading days in a row behind the level.

Hedger support area – the price range within which a major participant in trading on the CME Globex exchange produces a hidden set of positions to buy a futures by setting a grid of pending orders to buy an asset or opening deals for an increase at a market price.

Hedger Resistance Zone – the price range within which a major participant in trading on the CME Globex exchange produces a hidden set of positions to sell futures by placing a grid of pending orders to sell an asset or opening deals for a fall at the market price.

Strength Index – the coefficient of market engagement of speculators within a day, which shows the amount of the paid commission for buying options at a certain strike.

Institutional hedger (investor) – a professional participant of the electronic trading platform CME Globex, who, as a rule, when trading in financial markets, insures the potential risk of trading in the futures market by purchasing option contracts.

Limit Buyer/Seller – a CME Group futures speculator who intends to buy/sell a derivative at the best intraday price and earn profit until the close of the current/next business day with a bias to close a trading position without transferring an overnight transaction.

Market Masters (smart money) – professional traders who conduct concerted actions when trading selected assets and jointly recruit positions in a certain direction with the intention of secretly gaining positions at the most favorable prices and subsequently performing the accumulation/distribution process.

Total market volume (Volume) - an indicator of cash investments in a certain financial asset of large market participants accountable to the US Commodity Futures Trading Commission (CFTC).

Sentiment CoT – indicator of the aggregate preponderance of the expectations of large participants in the CME Group for the long-term movement of an asset for growth or decline.

Locked positions of investors (Lock Inv) – indicator of market uncertainty among large investors for the unidirectional movement of an asset.

Market maker loss level – the lower/upper border of the price channel, when the futures price is located. Within it at the time of expiration of the option contract, the market maker will receive a net profit (the difference between the commission received and the amount of payments to option holders in “money”).