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FAST MARKET: This is a financial market experiencing high trading volume and increased volatility. During this time, brokers are not guaranteed to any fills if trading through a limit order.

FED FUNDS (FEDERAL FUNDS): Funds deposited by commercial banks at Federal Reserve Banks. It is designed to enable banks that are temporarily short of their reserve requirement to borrow reserves from banks with excess reserves. 

FED FUNDS RATE: This is the interest rate that banks charge each other for the use of Federal funds. It changes daily and is an indicator of general interest rate trends. 

FEDERAL OPEN MARKET COMMITTEE (FOMC): This is the branch of the Federal Reserve Board that determines the direction of monetary policy. The FOMC is composed of the Board of Governors, which has seven members, and five reserve bank presidents. The FOMC meets eight times per year to set key interest rates, such as the discount rate, and to decide whether to increase or decrease the money supply, which the Fed does through buying and selling government securities.

FEDERAL RESERVE BOARD (FRB): The 7-member Board of Governors that oversees Federal Reserve Banks, establishes monetary policy (interest rates, credit, etc.), and monitors the economic health of the country.It administers the supply of money and credit to control inflation and help promote a stable economy. 

FENCE: An option and stock position that emulates a bull spread. On the other hand, a reverse fence can be an option and stock position that emulates a bear spread. Both types of options have the same expiration date.

FILL OR KILL (FOK): This is an order that must immediately be filled in its entirety or, if this is not possible, totally canceled, which is similar to an all-or-none trade (AON).

FILL: Completing or satisfying an order for a security or commodity. It is the basic act in transacting stocks, bonds or any other type of security. 

FINANCIAL INDUSTRY REGULARY AUTHORITY (FINRA): This was the merger of the National Association of Securities Dealers and the New York Stock Exchange's regulation committee. The Financial Industry Regulatory Authority (FINRA) is responsible for governing business between brokers, dealers and the investing public. Consolidating these two regulators has helped reduce regulatory overlap and costs. 

FINANCIAL INDUSTRY REGULATORY AUTHORITY AUTOMATIC QUOTATION SYSTEM (FIRAAQ): An electronic information network that allows brokers and dealers to see the price quotations for the more actively traded common stock issued in the exchange.

FLAT: A price which is neither rising nor falling; here also called sideways.

FLOAT: This is the total number of shares publicly available for trading. The float is calculated by subtracting the restricted shares from the outstanding shares. Float is also known as "free float". 

FLOOR BROKER: This is an exchange member who executes orders on the floor of an exchange on behalf of others who do not have access to the trading floor, also referred to as a pit broker.

FLOOR TRADER: This is an exchange member who executes orders on the floor for his/her own account. This type of trader is also known as a local.

FLOOR: A floor is the minimum allowable limit. An example of floor is when the issuing corporation declares a minimum acceptable amount at which an investment bank can purchase the securities.

FREE CREDIT BALANCE: The cash held by a broker in a customer's margin account that can be withdrawn by the customer at any time without restriction. The credit balance is calculated as the total remaining money in a margin account after margin requirements. 

FROZEN ACCOUNT: This is an account where no withdrawals or purchases can be charged. This occurs when the account holder fails to pay promptly for purchases charged to the account.

FULL POWER OF ATTORNEY: A legal document that allows someone other than the owner of an account, to execute trades, makes deposits or withdrawals for that customer. 

FULL TRADING AUTHORIZATION: This is permission given by a customer granting his/her brokerage the power of attorney in making trades.

FUNDAMENTAL ANALYSIS: A method of security valuation which involves examining the company's financials and operations, especially sales, earnings, growth potential, assets, debt, management, products, and competition. The end goal of performing fundamental analysis is to generate a value that an investor can compare with the security's current price in hopes of figuring out what sort of position to take with that security. 

FUNDAMENTALS: These include any factor that could be considered important to the understanding of a particular business. Examples of fundamentals include a company's growth, revenues, earnings, management, and capital structure.

FUNGIBILITY: The term is often used to apply to financial instruments which are identical in specifications. For example, options and futures contracts are highly fungible, since they are highly standardized arrangements. On the other hand, forwards and swaps are not, since they are customized arrangements. Instruments that are highly fungible tend to be very liquid, and so transaction costs tend to be low.

FUTURE(S) CONTRACT: Futures contracts are forward contracts, meaning they represent a pledge to make a certain transaction at a future date. A futures contract requires a standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. Unlike options, futures convey an obligation to buy. The risk to the holder is unlimited, and because the payoff pattern is symmetrical, the risk to the seller is unlimited as well.

Futures contracts are forward contracts, meaning they represent a pledge to make a certain transaction at a future date. A futures contract requires a standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. Unlike options, futures convey an obligation to buy. The risk to the holder is unlimited, and because the payoff pattern is symmetrical, the risk to the seller is unlimited as well.GAMMA:

 

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