Cash Settlement

The minimum accepted standard that a deliverable commodity must meet to be used as the actual of a futures contract. Also known as "par grade" or "contract grade."

A method for simplifying and shortening the quoted price of a futures contract. Used in the futures markets, a basis quote gives the variation above or below the price of a futures ...

A cost associated with holding a financial instrument or storing a physical commodity over a defined period of time.

A futures market where contracts with maturities further into the future have higher future prices relative to current spot prices. These higher future prices are associated with higher ...

The marketplace for immediate settlement of transactions involving commodities and securities. In a cash market, the exchange of goods and money between the seller and the buyer takes ...

In futures trading, the cash commodity is delivered for payments. In certain contracts, a party is obligated to physically deliver the actual cash commodity, such as soybeans, oil, or ...

The total charges associated with the delivery and certification of commodities underlying a futures contract.

A type of futures contract that requires the delivery of the underlying commodity in the current or following month before other futures contracts of the same commodity with other ...

The event in which the price of a futures contract covers all of the carrying charges of the underlying asset, such as storage and insurance. Also referred to as a "full carry".

A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. ...