Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

cross-margining

Financial services; Commodity exchange

A procedure for margining related securities, options, and futures contracts jointly when different clearing houses clear each side of the position.

A professional securities dealer who has an obligation to buy when there is an excess of sell orders and to sell when there is an excess of buy orders. By maintaining an offering price sufficiently ...

delivery option

Financial services; Commodity exchange

A provision of a futures contract which provides the short with flexibility in regard to timing, location, quantity, or quality in the delivery process.

forward purchase or sale

Financial services; Commodity exchange

A purchase or sale between commercial parties of an actual commodity for deferred delivery.

dealer option

Financial services; Commodity exchange

A put or call on a physical commodity, not originating on or subject to the rules of an exchange, in which the obligation for performance rests with the writer of the option. Dealer options are ...

reversal

Financial services; Commodity exchange

A change of direction in prices.

underlying commodity

Financial services; Commodity exchange

The commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised. Also, the cash commodity underlying a futures contract.