Technical analysis
Technical analysis uses charts to examine changes in price patterns, volume of trading, open interest, and rates of change to predict and profit from trends. Someone who follows technical rules (called a technician) believes that prices will anticipate changes in fundamentals.
Technician
One who uses technical analysis to forecast price movements.
Terms
The components, elements, or parts of an agreement. The “terms” of a futures contract include: which commodity, its quality, the quantity, the time and place of delivery, and its price. All the terms of futures and futures option contracts are standardized by the exchange, except for price, which is determined through “open-outcry” in the exchanges’ trading pits.
Tick
The minimum allowable price fluctuation (up or down) for a futures contract. Different contracts have different size ticks. Ticks can be stated in terms of price per unit of measure, or in dollars and cents. See also Point.
Time value
The premium of an out-of-the money option reflecting the probability that an option will move into-the-money before expiration constitutes the time value of the option. There also may be some time value in the premium of an in-the-money option, which reflects the probability of the option moving further into the money. To determine the time value of an in-the-money option, subtract the amount by which the option is in-the-money (intrinsic value) from the total premium.
Trading range
The prices between the high and the low for a specific time period (day, week, life of the contract).
Trend
A significant price movement in one direction or another. Trends may go either up or down.
