Commodity exchange

Commodity exchange

Industry: Financial services

Add a new term

Contributors in Commodity exchange

Become a Contributors

Commodity exchange

ratio vertical spread

Financial services; Commodity exchange

A delta-neutral ratio spread in which more options are sold than bought. A front spread will increase in value if volatility decreases.

delta neutral

Financial services; Commodity exchange

Refers to a position involving options with a value that is independent of the value of the underlying instrument, i.e. that is designed to have an overall delta of zero.

seat

Financial services; Commodity exchange

An instrument granting trading privileges on an exchange. If the exchange has a mutual ownership structure, a seat may also represent an ownership interest in the exchange.

commodity index fund

Financial services; Commodity exchange

An investment fund that enters into futures or commodity swap positions for the purpose of replicating the return of an index of commodity prices or commodity futures prices.

manufacturer (AM)

Financial services; Commodity exchange

A large trader that declares itself a “Manufacturer” on CFTC Form 40, which provides as examples “refiner, miller, crusher, fabricator, sawmill, coffee roaster, cocoa grinder.”

seller's call

Financial services; Commodity exchange

Seller's call, also referred to as call purchase, is the same as the buyer's call except that the seller has the right to determine the time to fix the price.

delivery point

Financial services; Commodity exchange

A location designated by a commodity exchange where stocks of a commodity represented by a futures contract may be delivered in fulfillment of the contract.