Commodity exchange glossaries and terms

margin

Financial services; Commodity exchange

Financial safeguards to ensure that clearing members (usually companies or corporations) perform on their customers' open futures and options contracts. Clearing margins are distinct from customer ...

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.

cost of carry

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures markets, it refers to ...

carry

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures markets, it refers to ...

carrying charge

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures markets, it refers to ...

foreign exchange

Financial services; Commodity exchange

Foreign Currency. On the foreign exchange market, foreign currency is bought and sold for immediate or future delivery.

interest rate futures

Financial services; Commodity exchange

Futures contracts traded on fixed income securities such as G.N.M.A.s, U.S. Treasury issues, or CDS. Currency is excluded from this category, even though interest rates are a factor in currency ...

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