Glossary

Unable

All orders not filled by the end of a trading day are deemed "unable" and void, unless they are designated GTC (Good Until Cancelled) or open.

Uncovered Option

Uncovered Option (also referred to as a Naked Option) is a short call or put option position which is not covered by the purchase or sale of the underlying futures contract or physical commodity.

Underlying Commodity

Underlying Commodity is the cash commodity underlying a futures contract. Also, the commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised.

Underlying Futures Contract

Underlying Futures Contract is a specific futures contract that the option conveys the right to buy (in case of a call) or sell (in the case of a put).

Variable Limit

Variable Limit is a price system that allows for larger than normal allowable price movements under certain conditions. In periods of extreme volatility, some exchanges permit trading at price levels that exceed regular daily price limits.