Value Date
| The date that both parties of a transaction agree to exchange payments.
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Variable Limits
| A Chicago Board of Trade price limit system that allows for larger than normally allowable price movements under certain circumstances. Those circumstances are as follows: if three or more contracts within a contract year (all contracts in a contract year if there are less than three open contracts) close on the limit bid (lower) for three successive business days then the limit would become 150 percent of the current level for all contract months and remain there for three successive business days. However, in financial instrument futures, if three or more contracts within a contract year (or all contracts in a contract year if there are less than three open contracts) close on the limit bid for one business day or the limit seller for one business day, then the limit would be raised to 150 percent of the current level for all contract months and remain there for three successive business days. If three or more contract months (or all contracts in a contract year if there are less than three open contracts) in a given contract year close on the limit bid for the next three business days or on the limit sellers for three successive business days, then the limits will remain at 150 percent of the original level for another three-day period. The limits would remain at 150 percent for successive periods of three business days until three or more contracts in a year (or all contracts in a contract year if there are less than three open contracts) do not close at the limit on one day during that period. If, at any time during a three-day business period, the three or more contract months (or all contracts in a contract year if there are less than three open contracts) do not close on the limit bid or limit sellers then the limits would revert to their original level at the end of the three-day period.
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Variable Price Limit
| A price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movement for any one trading day.
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Variation Margin
| Payment made on a daily or intraday basis by a clearing member to the clearing organization based on adverse price movement in positions carried by the clearing member, calculated separately for customer and proprietary positions.
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Variation Margin Call
| A call for additional margin deposits made by a clearinghouse to a clearing member while trading is in progress when current price trends have substantially reduced the clearing member's margin deposits. Variation calls are payable within the hour.
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Vault Receipt
| A document indicating ownership of a commodity stored in a bank or other depository and frequently used as a delivery instrument in precious metal futures contracts.
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Venture Capital
| Moneys not needed for routine living expenses and basic savings that are available for purposes of investing or speculating.
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Visible Supply
| Usually refers to supplies of a commodity in licensed warehouses. Often includes afloats and all other supplies "in sight" in producing areas.
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Voice Contact
| A direct telephone connection between a broker and the trading floor.
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Volatility
| A statistical measure of a market or a security’s price movements over time and is calculated by using standard deviation. Associated with high volatility is a high degree of risk.
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Volatility Quote Trading
| Refers to the quoting of bids and offers on option contracts in terms of their implied volatilities rather than as prices.
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Volume
| For options, the number of contracts that have been traded within a specific time period, usually a day or a week.
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Volume of Trade
| The number of contracts traded during a specified period of time. It may be quoted as the number of contracts traded or in the total of physical units, such as bales or bushels, pounds or dozens.
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Voting Trust
| The deposit of shares with a trustee to gain long-term corporate control.
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