Price Limit: Price Limit (also referred to as Maximum Price Fluctuation) is the maximum advance or decline, from the previous day's settlement price, permitted for a futures contract in one trading session.
Exchange: A central marketplace with established rules and regulations where buyers and sellers meet to trade futures and options contracts or securities. Exchanges include designated contract markets and derivatives transaction execution facilities.
Ring: Ring is a circular area on the trading floor of an exchange where traders and brokers stand while executing futures trades. Some exchanges use pits rather than rings.
Rules: Rules are the principles, standards and requirements for governing an exchange. In some exchanges, rules are adopted by a vote of the membership, while in others, they can be imposed by the governing board.
Settlement: Settlement is the act of fulfilling the delivery requirements of the futures contract.
Settlement Price: Settlement Price (also referred to as Closing Price) is the last price paid for a futures contract on any trading day. Settlement prices are used to determine open trade equity, margin calls and invoice prices for deliveries. Settlement price at which the clearing organization clears all trades and settles all accounts between clearing members of each contract month. The term also refers to a price established by the exchange to even up positions which may not be able to be liquidated in regular trading.
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Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.