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Used in the context of general equities. The opening. Antithesis of the Close.
Come out of the trade
Used in the context of general equities. Traders resulting position in a security from executing a trade (or the
expectations thereof). Antithesis of going into the trade.
COMEX
A division of the New York Mercantile Exchange (N.Y.M.E.X.). Formerly known as the Commodity
Exchange, COMEX is the leading U.S. market for metals futures and options trading.
Commercial draft
Demand for payment.
Commercial paper
Short-term unsecured promissory notes issued by a corporation. The maturity of commercial paper is
typically less than 270 days; the most common maturity range is 30 to 50 days or less.
Commercial risk
The risk that a foreign debtor will be unable to pay its debts because of business events, such as
bankruptcy.
Commission
The fee paid to a broker to execute a trade, based on number of shares, bonds, options, and/or their dollar
value. In 1975, deregulation led to the creation of discount brokers, who charge lower commissions than full
service brokers. Full service brokers offer advice and usually have a full staff of analysts who follow specific
industries. Discount brokers simply execute a clients order -- and usually do not offer an opinion on a stock.
Also known as a round-turn.
Commission broker
A broker on the floor of an exchange who acts as agent for a particular brokerage house and buys and sells
stocks for the brokerage house on a commission basis.
Commission house
A firm which buys and sells futures contracts for customer accounts. Related: futures commission merchant,
omnibus account.
Commitment
A trader is said to have a commitment when he assumes the obligation to accept or make delivery on a
futures contract. Related: Open interest.
Commitment fee
A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been
advanced. Often used in risk arbitrage. Payment to institutional investors in the U.K. (pension funds and life
insurance companies) by the lead underwriter of a takeover that takes place when the underwriter provides
the target company's shareholders with a cash alternative for a target company's shares in exchange for the
bidding companies shares. The payment is typically 0.5% for the first 30 days, 1.25% for each week
thereafter and a final 0.75% acceptance payment when the takeover is completed.
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