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Searching... Futures Trading Terms
Found in dictionaries: 14
  • Futures Trading Terms - 14
Search query: Cash Commodity
Found: 14
1. Cash Commodity
The actual physical commodity as distinguished from the futures contract based on the physical commodity. Also referred to as Actuals. =National Futures Association
2. Actuals
See also: Cash Commodity
3. Basis
The difference between the current cash price of a commodity and the futures price of the same commodity. =National Futures Association
4. Carrying Charge
The cost of storing a physical commodity, such as grain or metals, over a period of time. The carrying charge includes insurance, storage and interest on the invested funds as well as other…
5. Cash Settlement
A method of settling certain futures or options contracts whereby the market participants settle in cash (rather than delivery of the commodity). =National Futures Association
6. Cross-Hedging
Hedging a cash commodity using a different but related futures contract when there is no futures contract for the cash commodity being hedged and the cash and futures market follow similar…
7. Discount
(1) The amount a price would be reduced to purchase a commodity of lesser grade; (2) sometimes used to refer to the price differences between futures of different delivery months, as in the…
8. Forward (Cash) Contract
A contract which requires a seller to agree to deliver a specified cash commodity to a buyer sometime in the future. All terms of the contract are customized, in contrast to futures…
9. Liquidate
To take a second futures or options position opposite to the initial or opening position. To sell (or rchase) futures contracts of the same delivery month purchased (or sold) during an…
10. Long
One who has bought futures contracts or owns a cash commodity. =National Futures Association
11. Premium
Refers to (1) the amount a price would be increased to purchase a better quality commodity; (2) a futures delivery month selling at a higher price than another; (3) cash prices that are…
12. Short
One who has sold futures contracts or plans to purchase a cash commodity (e.g., a food processor). =National Futures Association
13. Spot
Usually refers to a cash market price for a physical commodity that is available for immediate delivery. =National Futures Association
14. Warehouse Receipt
A document guaranteeing the existence availability of a given quantity and commodity in storage; commonly instrument of transfer of ownership cash and futures transactions. …

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