Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

Differentials

Financial services; Commodity exchange

Price differences between classes, grades, and delivery locations of various stocks of the same commodity.

Maturity

Financial services; Commodity exchange

Period within which a futures contract can be settled by delivery of the actual commodity.

Deliverable stocks

Financial services; Commodity exchange

Stocks of commodities located in exchange approved storage, for which receipts may be used in making delivery on futures contracts. In the cotton trade, the term refers to cotton certified for ...

Term applied to the initial deposit of margin money each clearing member firm is required to make according to clearinghouse rules based upon positions carried, determined separately for customer and ...

Hedging

Financial services; Commodity exchange

Taking a position in a futures market opposite to a position held in the cash market to minimise the risk of financial loss from an adverse price change; a purchase or sale of futures as a temporary ...

Exercise

Financial services; Commodity exchange

The action taken by the holder of a call option if he wishes to purchase the underlying futures contract or by the holder of a put option if he wishes to sell the underlying futures contract.