Warehouse Receipt
| A document certifying possession of a commodity in a licensed warehouse that is recognized for delivery purposes by a commodity futures exchange.
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Warrant
| An issuer-based product that gives the buyer the right, but not the obligation, to buy (in the case of a call) or to sell (in the case of a put) a stock or a commodity at a set price during a specified period.
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Warrant or Warehouse Receipt for Metals
| Certificate of physical deposit, which gives title to physical metal in an exchange approved warehouse.
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Warrants
| Warrants are a form of traded option. They are the right to purchase shares or bonds issued by a company at a specific price within a specified time span.
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Wash Sale
| Transactions that give the appearance of purchases and sales but which are initiated without the intent to make a bona fide transaction and which generally do not result in any actual change in ownership. Such sales are prohibited by the Commodity Exchange Act.
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Wash Trading
| Entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without resulting in a change in the trader's market position.
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Weak Hands
| When used in connection with delivery of commodities on futures contracts, the terms usually means that the party probably does not intend to retain ownership of the commodity; when used in connection with futures positions, the term usually means positions held by small speculators.
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Weighted Average Maturity
| The arithmetic mean of maturities of securities held by a mutual fund.
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Weighting
| A method of evaluating the price performance of individual stocks compared with the movement of the total stock market. This method involves (1) assigning equal weights to equal price changes, or (2) determining the relative importance of each stock in accordance with market value.
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Whipsaw
| A term used to describe a condition in a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
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White Knight
| A company that rescues another in financial difficulty, especially one which saves a company from an unwelcome takeover bid.
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Wild Card Option
| Refers to a provision of any physical delivery Treasury Bond or Note futures contract which permits shorts to wait until as late as 8
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Winter Wheat
| Wheat that is planted in the fall, lies dormant during the winter, and is harvested beginning about May of the next year.
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Wirehouse
| See Futures Commission Merchant.
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Work-Out Quote
| Subject quote in which the trader estimates the price at which he thinks the security can be bought or sold if given time to find a market.
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Writer
| The seller of an option. The writer is required to fulfill the option should it be exercised. Also known as a Grantor.
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Writing
| A form of option writing in which the writer (using calls as our example) owns neither the underlying instrument nor a different option on that same instrument with the same (or later) expiration date and lower striking price.
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