Commodity exchange glossaries and terms

Offset

Financial services; Commodity exchange

Liquidating a purchase of futures contracts through the sale of an equal number of contracts of the same delivery month, or liquidating a short sale of futures through the purchase of an equal number ...

Closing-out

Financial services; Commodity exchange

Liquidating an existing long or short futures or option position with an equal and opposite transaction. Also known as Offset.

Grain terminal

Financial services; Commodity exchange

Large grain elevator facility with the capacity to ship grain by rail and/or barge to domestic or foreign markets.

Settlement price

Financial services; Commodity exchange

The last price paid for a commodity on any trading day. The exchange clearinghouse determines a firm's net gains or losses, margin requirements, and the next day's price limits, based on each futures ...

Closing price

Financial services; Commodity exchange

The last price paid for a commodity on any trading day. The exchange clearinghouse determines a firm's net gains or losses, margin requirements, and the next day's price limits, based on each futures ...

Settle

Financial services; Commodity exchange

The last price paid for a commodity on any trading day. The exchange clearinghouse determines a firm's net gains or losses, margin requirements, and the next day's price limits, based on each futures ...

Grantor

Financial services; Commodity exchange

The maker, writer, or issuer of an option contract who, in return for the premium paid for the option, stands ready to purchase the underlying commodity (or futures contract) in the case of a put ...

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