Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

Combination

Financial services; Commodity exchange

Puts and calls held either long or short with different strike prices and expirations.

Hedge ratio

Financial services; Commodity exchange

Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimise basis risk.

Refers to the difference between the cost of a commodity and the combined sales income of the finished products which result from processing the commodity. Various industries have formulas to express ...

Life of contact

Financial services; Commodity exchange

Period between the beginning of trading in a particular futures contract and the expiration of trading. In some cases this phrase denotes the period already passed in which trading has already ...

Ginnie Mae

Financial services; Commodity exchange

Pass-through mortgage-backed certificates guaranteed by the Government National Mortgage Association (GNMA or Ginnie Mae). The certificates are backed by pools of FHA insured and/or VA guaranteed ...

Forward market

Financial services; Commodity exchange

Refers to informal (non-exchange) trading of commodities to be delivered at a future date. Contracts for forward delivery are "personalized" (i.e., delivery time and amount are as determined between ...

London gold market

Financial services; Commodity exchange

Refers to the five dealers who set (fix) the gold price in London: Mocatta & Goldsmid, N. Rothschild & Sons, Johnson Matthey, Sharps Pixley, and Samuel Montagu & Co.