Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

Equity

Financial services; Commodity exchange

The residual dollar value of a futures, option, or leverage trading account, assuming it was liquidated at current prices.

basis risk

Financial services; Commodity exchange

The risk associated with an unexpected widening or narrowing of basis between the time a hedge position is established and the time that it is lifted.

naked option

Financial services; Commodity exchange

The sale of a call or put option without holding an offsetting position in the underlying commodity.

intermarket spread

Financial services; Commodity exchange

The sale of a given delivery month of a futures contract on one exchange and the simultaneous purchase of the same delivery month and futures contract on another exchange.

reverse crush spread

Financial services; Commodity exchange

The sale of soybean futures and the simultaneous purchase of soybean oil and meal futures. The purchase of soybean futures and the simultaneous sale of soybean oil and meal futures.

gold fixing

Financial services; Commodity exchange

The setting of the gold price at 10:30 AM (first fixing) and 3:00 PM (second fixing) in London by five representatives of the London Gold Market. See London Gold Market.

The simultaneous buying and selling of two related markets in the expectation that a profit will be made when the position is offset. Examples include: buying one futures contract and selling another ...