Futures & Market Research Glossary
Some of the most familiar futures terms are also the easiest to misunderstand. Trading volume counts contracts changing hands, while open interest measures contracts still outstanding. The two can move in different directions, and confusing them can lead to very different readings of market activity.
This glossary covers futures contracts, COT classifications, term structure, spreads, seasonality, volatility and statistical concepts used in financial research. Alongside the definitions, you'll find explanations of the mechanics involved and the circumstances in which particular measures become useful.
Contract specifications, reporting conventions and calculation methods can make a considerable difference. A trader category in one COT report, for instance, isn't automatically equivalent to a similar category in another. Understanding such distinctions is essential when comparing data across markets or historical periods.