Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

Hybrid-instruments

Financial services; Commodity exchange

Financial instruments that possess, in varying combinations, characteristics of forward contracts, futures contracts, option contracts, debt instruments, bank depository interests, and other ...

Grain futures act

Financial services; Commodity exchange

Federal statute which regulated trading in grain futures, effective June 22, 1923; administered by the U.S. Department of Agriculture; amended in 1936 by the Commodity Exchange Act.

Back pricing

Financial services; Commodity exchange

Fixing the price of a commodity for which the commitment to purchase has been made in advance. The buyer can fix the price relative to any monthly or periodic delivery using the futures markets.

Churning

Financial services; Commodity exchange

Excessive trading of an account by a broker with control of the account for the purpose of generating commissions while disregarding the interests of the customer.

Default

Financial services; Commodity exchange

Failure to perform on a futures contract as required by exchange rules, such as failure to meet a margin call, or to make or take delivery.

The area on the trading floor where futures and options on futures contracts are bought and sold. Pits are usually raised octagonal platforms with steps descending on the inside that permit buyers ...

Performance bond margin

Financial services; Commodity exchange

The amount of money deposited by both buyer and seller of a futures contract or an options seller to ensure performance of the term of the contract. Margin in commodities is not a payment of equity ...