On Track

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DEFINITION

1. A type of commodities delivery for futures contracts that is deferred and priced according to the seller's location FOB.



2. A physical commodity that is already loaded on railroad cars or trucks and ready for delivery.

INVESTOPEDIA EXPLAINS

1. In this form of contract, the buyer of the futures contract is agreeing to pay all associated freight costs for receiving the underlying commodity.



2. Commodities on track or on-track country station are ready to be transported to the necessary locations for the fulfillment of the contract obligations.


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