Commodity swap

Commodity swap

A commodity swap is an agreement where by a floating (or market or spot) price based on an underlying commodity is exchanged for a fixed price over a specified period.

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Part of Speech: noun
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Industry/Domain: Financial services
Category: Stocks & securities
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Related terms

commodity swap

Financial services; Stocks & securities

A commodity swap is an agreement where by a floating (or market or spot) price based on an underlying commodity is exchanged for a fixed price over a specified period.

Commodity

Economy; Economics

A commodity is any homogenous item that may be freely bought and sold. The term typically refers to products such as coffee, cocoa and soyabeans (soft commodities) or gold, ...

swap

Banking; Investment banking

In general: financial term for a combined or simultaneous buying and selling operation. (1) Swaps between central banks: transactions that are frequently carried out in ...

swap

Computer; Software; Software engineering

(1) An exchange of the contents of two storage areas, usually an area of main storage with an area of auxiliary storage.~(2) To perform an exchange as in (1).

swap

Financial services; Commodity exchange

In general, the exchange of one asset or liability for a similar asset or liability for the purpose of lengthening or shortening maturities, or raising or lowering coupon rates, ...

swap

Economy; International economics

1. In exchange markets, this is a simultaneous sale of a currency on the spot market together with a purchase of the same amount on the forward market. By combining these two ...

above par

Financial services; Stocks &securities

If bonds are re-sold on the secondary market, and if interest rates are lower that the bond's coupon rate, the bond will be sold at a premium, or above par.

P/E ratio

Financial services; Stocks &securities

The ratio of a company's current price per share and average earnings per share. The former is divided by the latter. A high ratio suggests high growth potential in the future.