Chapter 2 Vocab

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Across
  1. 2. DELIVERY The actual underlying asset is delivered from the seller to the buyer (8,8)
  2. 6. MARGIN The additional margin that a trader must deposit to bring their account back up to the initial margin level (9,6)
  3. 7. The process where the clearinghouse becomes the buyer to every seller and the seller to every buyer (8)
  4. 9. MARGIN The minimum amount of margin that a trader must maintain in their account (10,6)
  5. 11. The difference between the expected price and the actual execution price (9)
  6. 12. SETTLEMENT The contract is settled by the payment of cash (4,9)
  7. 13. A self-regulatory organization that oversees futures markets (3)
Down
  1. 1. An order to buy or sell at the best available price (6)
  2. 3. CALL A demand from a brokerage firm to a trader to deposit additional funds (6,4)
  3. 4. ORDER An order that expires at the end of the trading day (3,5)
  4. 5. A general term for fees paid to a brokerage firm for executing trades. (10)
  5. 8. An order to buy or sell at a specific price or better (5)
  6. 10. The primary regulator of the futures market in the U.S. (4)