Glossary

FUNDAMENTAL ANALYSIS studies the evolution of the market through surveys of macro-economic, considering the economic and political factors of a country.

TECHNICAL ANALYSIS Technical analysts make use of graphs that represent the historical market prices and trading volumes to predict the trend of the market whether it will be positive or negative and if this trend will last much longer.

ARBITRAGE sale of one currency against another currency or goods against other goods of a different bag to profit from the price differences.

BACKWARDATION situation that is determined on the futures markets of the goods when the spot price exceeds the forward price

BROKER Professional on financial markets or raw materials acts as an intermediary between the seller and buyer holding a commission for himself, without constituting positions on their own.

BULLION (Precious Metals) Originally meaning "fusion" or "brand", probably derived from the French bouillon, boiling.

CALL (OPTION) The buyer of the option pays a premium for the right to purchase a certain quantity of gold or currency at a specified price and at a time. He has the right but not the obligation to buy the currency or precious metal object option.

CHANNEL It consists of two parallel channels that compress the recent highs and lows. His inclination indicates the trend.

CARAT A measure of the fineness of gold. unit of precious stones: 1c = 0.2053 grams.

CASH FORWARD Contract Spot date with deferred execution. At the cash price is added the interest, calculated at the rate for the money market for the respective currency.

CERTIFICATES gold certificates are a way to own gold without physical delivery. Issued by individual banks, evidence ownership of the holder, as the metal is deposited at the bank on behalf of the client. The client thus saves on deposit and personal safety, liquidity and buy in terms of ability to sell shares because it has (if necessary) with a simple phone call to the custodian bank

ABBREVIATION CFCT do Commodity Futures Trading Commission, the body responsible for monitoring the transactions in the U.S. commodity futures.

CHART Graphical representation of the courses.

CLOSING THE DOOR Closing of short positions

CIF Abbreviation for "Cost, insurrance, Freight." The CIF price of a product includes its cost, the cost of insurance and freight up to destination.

CLEARING compensation system for securities or commodities, which guarantees to the buyer or seller to fulfill the contract without the intervention of a broker.

COMEX The New York Commodity Exchange, now a division of the NYMEX, the New York Mercantile Exchange. The contracts in the COMEX gold market consist of 100 ounces each, and contracts are actively traded in the months of the year.

COMMODITIES A term used to designate goods or raw materials.

DELIVERY transfer of property from seller to buyer. Does not necessarily imply physical shipment but can be done on paper, leaving the precious metals in a bank vault specification.

ACCOUNT - ALLOCATED account in which the metal of the customer is individually identified as his and physically kept separate from all other gold present in the vault, in the case of default by the custodian bank, the investor becomes a secured creditor.

ACCOUNT - NOT ALLOCATED account in which the ingots of the customer are not specifically separated, and it can be less expensive than an allocated account because some banks do not charge a deposit. The client shall be exposed to a greater risk to the counterparty because it is a unsecured creditor in the event of default by the custodian bank.

TERM CONTRACTS NOT STANDARDIZED (FORWARD) A contract of capital (OTC) that negotiates with an asset balance on a specific date in the future. Each futures contract is not standardized "measure".

FUTURES CONTRACTS An agreement to buy or sell a specific amount of an asset or a financial instrument at a particular price on a future date agreed, the contract can be sold before the date of balance. Futures contracts are standardized and are traded with "margin" in the future Handbags, such as the COMEX division of NYMEX, the CBOT, or the TOCOM.

COVER The use of derivatives to protect against price risks.

COVERAGE UNDER THE DELTA Metal purchased (sold) by the grantor of a call (put) to cover its potential risk. Plus the price of the underlying asset moves in favor of those who buy the option, the greater the risk for the trustor that the option is exercised against him must be insured against this risk.

DATE OF LIQUIDATION Date scheduled delivery and payment. The prompt settlement in the precious metals market takes place two days after the conclusion of the transaction.

DELTA The proportion according to which the price of an option changes in response to a change in the price of the underlying asset. The delta measures the sensitivity of option price to changes in the price of the good.

DEPORTED the difference between the forward price and the spot price when the second than the first.

DIFFERENTIAL The difference between the Bid price (the price that a buyer is prepared to pay for the gold) and Letter (the price at which a seller is offering to sell).

EFP (Exchange for physical / sale of the base) mechanism that allows a customer to open or close a futures contract through the physical market when the stock market future in question is closed. A trader will on behalf of the client in the unregulated market and then replace the position with a position of the opening of the stock exchange futures exchange. The difference in price between the cash and the futures contract itself is often called EFP.

EXPOSURE IN REAL The number of contracts (long and short) to be processed in a futures contract.

FIXING The fixing of the gold price in London (see: www.goldfixing.com) takes place twice a day by phone and sets a price at which you can fix all orders for buying and selling on a spot basis at the time of fixing. The fixing is widely used as a benchmark for spot transactions in the market. The five members of the fix 'meet' at 10.30 am and 15.00 pm, London time, and begin fixing a trial price. When it was sold the place of Rothschild, this will have five members for fixing. The representatives of the members of the price fixing refer to the dealing room, which is in contact with the bullion dealers interested (or who have clients interested) and these then declare how much metal on a net basis, want to buy or sell at that level. The operators are also in touch with their customers, who can change their order, or add or cancel an order at any time. The position declared by the dealers is the net position of all customers (ie, if a bank has customers who want to buy a total of two tons, and other customers who want to sell a total of one tonne, then he declares himself a buyer of one ton). Each fixing member its position and represent that you, as a representative of all interested parties, net buyer or seller (and how much), or to be in balance. If the market is not balanced, with gold demand that exceeds the supply, then the price will be adjusted upwards (and vice versa) until equilibrium is reached (because some customers will withdraw or amend their orders if the price does not suit them). At this point the price is declared fixed. On very rare occasions the price will be fixed when there is disequilibrium, at the discretion of the chairman of the fix. The fix is thus entirely open and any user can participate in the market through its bank.

GOFO Screech Gold Forward Offered Rate, the rate at which operators are now the gold in exchange for U.S. dollars.

LAKH term trading which means 100,000 and comes from the Indian word having the same meaning.

The LBMA London Bullion Market Association acts as coordinator of activities conducted on behalf of its members and other participants in the London Bullion Market, and is the main point of contact between the market and its regulators.

LINE SUPPORT line that delimits the lower part of a trend.

LINGOTTO title bar of precious metal with not less than 995.00 milliseconds.

LIQUIDITY Quality owned by a financial instrument that makes it quickly convertible into cash without significant loss of value.

LONG (LONG) Position purchasing a futures exchange.

MARGIN Warranty that in transactions in futures or in the case of sales of options, it should be provided to cover the exchange rate risk.

MARGIN (initial) The amount of money deposited for the contract at the beginning of the transaction.

MARGIN (maintenance) Sum which must be maintained in storage during the course of the transaction.

MONTH OF TRADING The forward transactions, the month of expiration of the contract.

TROY OUNCE unit weight of the metal used in the world Anglosassone.1 ounce = 31.1035 grams.

OPERATION READY Delivery and payment made within two working days of the conclusion of the contract.

OPERATION FORWARD Buying or selling compliance with a specified future date. Cash Forward - Futures.

OPTION The right to buy or sell in the manner prescribed by contract, against payment of a premium. The buyer has the right to exercise the option or not, the seller is obliged to respect it (collects the premium).

ORDER with a limit price order issued by a customer for a transaction to be executed at a specific price. The order is triggered if the market touches that price (or better).

ORDER closing loss An order that will close a losing position when the price reaches a specified level. These negotiations are carried out to the fullest, because you can not guarantee that a specific price will be negotiated if the markets are fast moving (as often happens when you activate many orders of closure at a loss).

OTC (Over-the-counter) market unregulated. The unregulated market gold contracted on a continuous basis, 24 hours on 24, and it accounts for the majority of global trade of gold. The majority of the trading unregulated is adjusted using the gold stored in London, regardless of the country in which the transaction takes place.

BOUGHT OVER (overbought) A term that anticipates a possible downward correction after a violent upward trend.

SOLD OVER (oversold) Time-limit which configures a situation opposite to the previous.

JOGGING Balancing a forward position by means of an inverse operation to the same maturity.

GOLD STANDARD Quantity of gold standard, fixed by law, the corresponding currency unit.

LOTS OF DEPOSIT ACCOUNT IN A trader in precious metals may hold gold held on deposit by a customer. This gold remains the property of the seller until the customer withdraws it and pays the prevailing price. Alternatively, the gold can be held by the operator at a local bank until you have customers for the purchase and delivery

WEIGHT UP Actual Weight of pure metal present in an ingot or in an alloy.

GROSS WEIGHT Actual Weight of an ingot or coin, that is, the weight of the precious metal, the more weight of other metals contained in the alloy.

PLATFORM computer system that allows you to exchange financial instruments

In PRIZE premium contracts, the price paid for the right to buy or not to exercise the option.

GOLD LOAN financing mechanism through which gold is borrowed from a bullion bank (which usually has, in turn, borrowed from one or more central banks), and sold in the market to raise cash, usually to finance an extraction. The metal is then paid off in an agreed period of time. The interest on the loan is usually paid in dollars or gold depending on the agreement between the counterparties.

PUNCH Arneseimpiegato smelter to mark the surface of the ingot and to ensure the amount of content.

PUT Option to whomever buys the right to sell a particular asset at a price agreed basis and its seller is obliged to accept it at that price. The buyer of the option pays a premium, therefore, the seller collects the.

LINE OF RESISTANCE line that marks the top of a trend

BULLISH Speculator which provides for an increase in prices.

BEARISH Who sells the open speculating on a fall of courses, hoping that they can buy later at a lower price.

REQUEST OF COVERAGE Coverage request later when, following the trend of the price of the course or a forward transaction or option is no longer sufficiently covered.

ASSAYER Professional instructed to submit the precious metal purity tests.

SCRAP Industrial waste of any kind resulting from the processing of precious metals.

SHORT position bearish for sale of financial securities.

SPECULATIVE LONG trader who has bought a forward or futures with the expectation of selling it at a higher price.

SPECULATIVE SHORT trader who has sold a futures or forward contract with the expectation of buying it back at a lower price.

SPOT Buying or selling spot.

SPOT DEFERRED forward contract in which contracts can be rolled forward as they mature. Delivery dates are specified in the same way as for any contract term is not standardized, but as each contract comes to maturity can be moved forward using current interest rates. The benefit, however, is terminated within a maximum period of time (a client may, for example, move forward every three months to ten years). Also called a fixed-term contract is not standardized interest rate.

STATE BULL speculator who bought a product or a bargaining tool with the expectation that prices go up and then sells them if the market does not meet his expectations.

GOOD STANDARD DELIVERY (valid transfer) specifications to which a gold ingot must comply in order to be acceptable in a given market or stock exchange. In London Bullion Market you have the standard of internationally accredited good delivery. An ingot certified good delivery for London should weigh between 350 and 430 ounces (gold content), with a minimum purity of 99.5% (ninety-nine point five). Additional specifications can be obtained dall'LBMA.

STOP LOSS order to buy or sell a certain limit, in order to guarantee a profit or limit a loss already achieved.

STRADDLE Operation simultaneous purchase and sale of goods other than, or different dates or in different markets - arbitrage.

SWAP Simultaneous operation of buying and selling such site against Zurich London site, or ingots ingots 999.90 against 995.00 thousandths thousandths or repurchase agreements.

SWITCH Simultaneous operation of buying and selling the same asset but with different maturities.

TREND Area bounded by lines of resistance and support within which the line runs in prices.

INTRINSIC VALUE Positive difference between the strike price of an option and the current market value of the asset to which it relates.

CURRENCY day from which interest shall commence. In transactions, the expiration date.

SHORT SELLING Forward sale without owning the asset to which it relates.

VOLATILITY indicates the speed and the amplitude of price change in a given period.

WARRANTS securitized product issued by a specific bank or securities house and usually carrying the name of the issuer and gives the buyer the right to buy gold at a certain price on a specific date. The warrants are not so very different from the options, but the price mechanism is generally easier. The options are a generic tool and are not linked in particular to an organization or an institution.