In this section

In this section

Electrolysis
A process for purifying metals such as copper or aluminium.
European Option
An option which in practice is only declared on the expiration date because the underlying metal can only be acquired at that time.
Expiration Date
The date at which the buyer's rights under an option contract expire if they have not been declared.
Forward
The purchase or sale of metal for delivery at a specified future date.
Futures Contract
A contract to buy or sell a metal on a certain date in the future at a specified price.
Give-Ups
A give-up occurs when a client instructs an executing LME broker to give up an uncleared contract to another of his LME brokers for the purpose of being entered into clearing and eventually settled.
Grantor
The person or firm that sells an option.
Hedging
The establishment of a position on a futures market, or by means of options, to reduce or cancel out the risk of another position.
In Warehouse
Title to metal sold under LME contracts passes with delivery of the warehouse warrant. LME prices therefore refer to metal lying in LME warehouse.
In-The-Money
Refers to a Put Option when its strike price is above the current market price, or a Call Option when its strike price is below the current market price.
Initial Margin
The initial outlay of money required to open a futures position.
Introducing Broker
An individual who introduces a client to a clearing member of the LME.