Commodity exchange

Commodity exchange

Industry: Financial services

Add a new term

Contributors in Commodity exchange

Become a Contributors

Commodity exchange

Time value

Financial services; Commodity exchange

The amount of money option buyer are willing to pay for an option in the anticipation that, over time, a change in the underlying futures price will cause the option to increase in value. In general, ...

Extrinsic value

Financial services; Commodity exchange

Fungibility

Financial services; Commodity exchange

The characteristic of interchangeability. Futures contracts for the same commodity and delivery month are fungible due to their standardised specifications for quality, quantity, delivery date and ...

Negative carry

Financial services; Commodity exchange

The cost of financing a financial instrument (the short-term rate of interest), when the cost is above the current return of the financial instrument. See Carrying Charges and Positive Carry.

Liquidation

Financial services; Commodity exchange

The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering. See Cover.

Econometrics

Financial services; Commodity exchange

The application of statistical and mathematical methods in the field of economics to test and quantify economic theories and the solutions to economic problems.