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Commodity exchange

Contributors in Commodity exchange

Commodity exchange

Sample grade

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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