FAQ ForexTimes.

1. The hedger's support range is a price range within which a large trading participant on the CME Globex exchange makes a hidden set of positions to buy futures by placing a grid of pending orders to buy an asset or opening trades to increase the market price.

PUT hedger's level + PUT hedger's premium level.

2. The hedger's resistance range is a price range within which a major trading participant on the CME Globex exchange produces a hidden set of positions to sell futures by placing a grid of pending orders to sell an asset or opening trades to reduce the market price.

CALL hedger's level + CALL hedger's premium level.

3. MarketMaker's loss level is the lower/upper limit of the price corridor, if the futures price is located inside of which at the time of expiration of the option contract, MarketMaker will receive a net profit (the difference between the commission received and the amount of payments to option holders in “money”).

If the price of a trading instrument goes beyond the MarketMaker's range at the time of expiration of the option contract, the MarketMaker will receive a net loss - therefore, if the price goes outside the range, the MarketMaker will most likely protect its profit by influencing the price so that it returns back to the range.

4. MarketMaker Balance – the level of the highest net profit of the seller of the option contract closest to expiration.

Option expiration is the moment when the option contract on the futures expires, after which the profit is paid to the option holders in “money”.

• A limit buyer/seller is a CME Group futures speculator who intends to buy/sell a derivative at the best intraday price and earn a profit before the close of the current/next business day with the bias of closing the trading position without rolling over the transaction overnight.
• An institutional hedger (investor) is a professional participant in the CME Globex electronic trading platform who, as a rule, when trading on financial markets, insures the potential risk of trading operations on the futures market by purchasing options contracts.
• Market Masters (smart money) are professional participants in trading in financial markets who conduct coordinated actions when trading selected assets and jointly take positions in a certain direction with the intention of secretly gaining positions at the most favorable prices and subsequently carry out the process of accumulation/distribution.
• Total market volume (Volume) is an indicator of monetary investments in a certain financial asset of large market participants reporting to the US Commodity Futures Trading Commission (CFTC).
• Sentiment CoT is an indicator of the cumulative preponderance of expectations of large members of the CME Group regarding the long-term movement of an asset towards growth or decline.