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-pit trading: floor-based trading, very physical activity.
-offsetting, is the same as selling a previously purchased stock or buying back a stock to close a short position. futures contracts are fungible: any futures contract can be offset by an equivalent futures contract . Fungibility is assured by the clearinghouse that inserts itself in the middle of each contract and, therefore, becomes the counterparty to each party.
-margin: long or short position in a futures, deposit sufficient funds in a margin account.
-In the stock market, "margin" means that a loan is made. The loan enables the investor to reduce the amount of his own money required to purchase the securities, thereby generating leverage or gearing.
-In the futures market, by contrast, margin is the amount of money that must be put into an account by a party opening up a futures position. When a transaction is initiated, a futures trader puts up a certain amount of money to meet the initial margin requirement; how­ ever, the remaining money is not borrowed. The amount of money deposited is more like a down payment for the commitment to purchase the underlying at a later date. Alternatively, one can view this deposit as a form of good faith money, collateral, or a performance bond: The money helps ensure that the party fulfills his or her obligation.'
-margin requirements stock: are set by federal regula tors.
-In futures markets, margin requirements are set by the clearinghouses.
-daily settlement/marking to market: the conversion of gains and losses on paper into actual gains and losses. As margin account balances change.
-The maintenance margin requirement is lower than the initial margin requirement. If the money in the margin account at the end of the day falls below the maintenance margin require­ ment, the trader must

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