| Haircut |
In determining whether assets meet capital requirements, a percentage reduction in the stated value of assets. In computing the worth of assets deposited as performance bond, a reduction from market value. |
| HAWK |
TIBCO technology that supports system and application monitoring. |
| Head and shoulders |
A sideways price formation at the top or bottom of the market that indicates a major market reversal. |
| Heating Degree Day (HDD) |
A day in which the average daily temperature is less than 65 degrees Fahrenheit, and therefore likely to be a day in which people turn on their heat. A heating degree day is assigned a value that represents the number of degrees that days average temperature is less than 65 degrees. For example, if a day's average temperature is 45 degrees, the Heating Degree Day (HDD) value for that day would be 20 (65 45). If the average temperature is greater than or equal to 65 degrees, the HDD value for the day would be zero. (The day would not be sufficiently cold to require heating.) |
| Hedge |
The purchase or sale of a futures contract as a temporary substitute for a cash market transaction to be made at a later date. Usually involves simultaneous, opposite positions in the cash market and futures market. |
| Hedger |
An individual or firm who uses the futures market to offset price risk when intending to sell or buy the actual commodity. See pure hedger, selective hedger. |
| Hedging |
1 - Taking a position in a futures market opposite to a position held in the cash market to minimize the risk of financial loss from an adverse price change. 2 - A purchase or sale of futures as a temporary substitute for a cash transaction which will occur later. See long hedge and short hedge. |
| Hedging line of credit |
Financing received from a lender for the purpose of hedging the sale and purchase of commodities. |
| Hidden quantity |
Order qualifier: indicates that the total quantity will not be displayed to the market, but only per increments as indicated. Difference between order quantity and displayed quantity is hidden. |
| High Limit |
Absolute top price for a valid order per a given instrument. Any order with a higher price is rejected. |
| Historical volatility |
A term used to describe historical price variability. It is the annualized standard deviation of daily returns of a specific FX futures contract, based on the most recent daily settlement prices of the FX futures contract. Historical Volatility is generally based on the most recent 10-trading day, 20-trading day, 30-trading day or 50-trading day period of time. |
| Holder |
One who purchases an option (also called the buyer). |
| Holiday |
Any day declared to be a holiday by these rules or by a resolution of the Board. The following days are declared holidays on which the Exchange shall be closed: New Year's Day, Washington's Birthday or President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Whenever said holiday falls on a weekend the Board may declare either the preceding or following business day as a holiday. |
| HON |
For internal system purposes. Stands for "Host Order Number" – sequential number attributed by the host in order to identify an order. It is attributed per brokerage firm, per instrument and per (calendar) day. Also referred to as a central trading engine assigned number: NºCTE. |
| HOP |
Host Output Processing sends outgoing acknowledgements of orders back to brokers. Acknowledgments and trade information is returned to the SLE and the user via the HOP connection. |
| House |
1 - A designation that refers to proprietary, non-segregated clearing member firm trading activity. 2 - A clearing member or a firm. |
| House Account |
Clearing firm's proprietary, non segregated trading account. |
| House switch |
An out trade correction in which the submitting clearing firm changes the specified opposite clearing firm. |
| HTN |
Host Trade Number – Sequential number attributed by the host in order to identify a trade. It is attributed per instrument and per (calendar) day. |
| Hundredweight |
100 pounds. Abbreviated as cwt. |