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Gold/Mining/Energy : HAWKEYE GOLD INTERNATIONAL INC. -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (9)	4/14/2001 11:27:41 AM
From: long-gone	Read Replies (1) \| Respond to of 24

K L M N KILOBAR Widely used bar containing 1 kilogramme of fine gold. KNOCK-OUT OPTIONS Exotic option whereby the contract is cancelled if the spot price breaks through an agreed price. See up-and-out puts and down-and-out calls. The knock-out option is priced differently since it can explode or be cancelled while theoretically it still has time value. LBMA London Bullion Market Association established in 1987 with the brief to represent the interests and well being of the all the participants of the bullion market. Within its charter are codes of conduct covering protocol, behaviour and ethics. Membership is open to any wholesale organisation involved in the storage, refining, assaying or trading of bullion within the United Kingdom. LEASE RATE The level of return a lender of metal can earn for providing market liquidity. Quoted daily on Reuters; its level is a function of the supply and demand for short term metal. LEASING/LENDING The process by which the Central Banks (and other holders of physical gold) can earn a return on what would otherwise remain a non-interest bearing asset. Lent gold provides the necessary liquidity for day-to-day transactions. LEGAL TENDER (COINS) Officially minted gold coins which may be used to purchase goods and services to the total of their face value. Since the value of the gold content greatly exceeds the coin’s face value, this rarely, if ever occurs. LIMIT DOWN Arbitrary price level below which trading on a Futures and Option Exchange ceases during that trading day. Imposed to prevent very sharp price declines in futures prices and are adjusted from time to time at the discretion of the Exchange. See Limits. LIMITS Arbitrary price barriers imposed by Futures and Options Exchanges to limit severe price movements during a trading day. There are no limits in the spot market. See Limit Up and Limit Down. LIMIT UP Arbitrary price level above which trading on a Futures and Option Exchange ceases during that trading day. Imposed to prevent very sharp price increases in futures prices and are adjusted from time to time at the discretion of the Exchange. LIQUIDITY The volume of business or turnover on an Exchange or any market forum; can be applied to either the paper market or the physical. LOAN COLLATERAL The use of gold stocks by the Official Sector to stand as collateral for foreign exchange loans, often during times of financial crisis. LOCAL Independent individual on an Exchange floor trading for his/her own account. LOCO Physical location of metal implied in price quotations. Unless otherwise stated, price quotations imply delivery loco London. LONG To be long of a commodity or associated futures or options contract is to have been a buyer. Contrast short. LOOKBACK OPTIONS A path-dependent option where the payoff is reliant not only on whether the option is in-the-money at expiry, but also on the maximum or minimum price achieved by the underlying during at least some part of the option life. Some analysts do not regard the lookback as a true option since it will always pay to exercise the option at expiry. LOT Exchange or trading room term for a standard futures contract. MALLEABLE Physical property of a metal which allows it to be hammered into very thin sheets without being subjected to structural damage. Gold is the most malleable metal. MARGIN The cash deposit against a paper contract payable as a guarantee. An initial payment is usually made and thereafter further margin requirements (margin call) may have to be met depending on the performance of the contract throughout it life. MARK TO MARKET The trading practice of automatically re-evaluating a customers outstanding position according to the current price and subsequent price movements - in other words so that the customers balance always reflects the most recent price. This can lead to margin calls. MARKUP The premium over the spot gold price applied to jewellery and other investment products. MARKET MAKER Active quoter of two way prices for both clients and counterparties. MATURITY DATE Date on which option matures; when it is either exercised or it expires worthless. Also known as expiration date. MILL Processing plant which prepares mined ore for smelting and further downstream extraction of metal. MIN-MAX See range forward options and cap and collars. MINT Agency usually associated with a state-owned refinery which is capable of striking coins. MOVING AVERAGE A basic method of charting a metal price which reflects the average progress over a elected period of time, eg one month or annual moving averages. MULTIPLE OPTION FINANCING Term used in bullion financing in which the gold loan agreement is flexible in that the borrower can elect to make capital and interest payments in either gold or hard currency. NAKED OPTIONS Option granted and left unhedged or exposed to potential exercising. NEARBY MONTH The closest active trading month on a futures and options Exchange. For example, in October the nearby month will be November. NUGGET An irregularly shaped piece of gold found in its native form usually in alluvial settings. NUMISMATIC COINS Gold coins collected primarily for their historical value and interest. Not normally legal tender. NYMEX New York Mercantile Exchange