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Commodity exchange
Industry: Financial services
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Commodity exchange
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Financial services; Commodity exchange
In commodities, usually the lowest quality of a commodity, too low to be acceptable for delivery in satisfaction of futures contracts.
Reverse conversion
Financial services; Commodity exchange
With regard to options, a position created by buying a call option, selling a put option, and selling the underlying futures contract.
Ratio hedge
Financial services; Commodity exchange
The number of options compared to the number of futures contracts bought or sold in order to establish a hedge that is risk neutral.
Strangle
Financial services; Commodity exchange
An option position consisting of the purchase or sale of put and call options having the same expiration but different strike prices.
Pyramiding
Financial services; Commodity exchange
The use of profits on existing positions as margin to increase the size of the position, normally in successively smaller increments.
Tender
Financial services; Commodity exchange
To give notice to the clearinghouse of the intention to initiate delivery of the physical commodity in satisfaction of the futures contract.
Swaption
Financial services; Commodity exchange
An option to enter into a swap -- i.e., the right, but not the obligation, to enter into a specified type of swap at a specified future date.
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