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Home > Terms > English, UK (UE) > Minimum price contract
Minimum price contract
A hybrid commercial forward contract for agricultural products which includes a provision guaranteeing the person making delivery a minimum price for the product. For agricultural commodities, these contracts became much more common with the introduction of exchange-traded options on futures contracts, which permit buyers to hedge the price risks associated with such contracts.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Commodity exchange
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