On Track

AAA

DEFINITION of 'On Track'

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 'On Track'

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.

RELATED TERMS
  1. Carrying Charge Market

    A futures market where contracts with maturities further into ...
  2. Free On Board - FOB

    A trade term requiring the seller to deliver goods on board a ...
  3. Full Charge

    The event in which the price of a futures contract covers all ...
  4. Carrying Charge

    Cost associated with storing a physical commodity or holding ...
  5. Cash Price

    The actual amount of money that is exchanged when commodities ...
  6. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
RELATED FAQS
  1. What are some of the major regulatory agencies responsible for overseeing financial ...

    There are a number of agencies assigned to regulate and oversee financial institutions and financial markets, including the ... Read Full Answer >>
  2. What types of corporations would be expected to have higher growth rates than more ...

    Investors looking for corporations with higher-than-average growth rates have several factors to consider. Although younger ... Read Full Answer >>
  3. How are commodity spot prices different than futures prices?

    Commodity spot prices and futures prices are different quotes for different types of contracts. The spot price is the current ... Read Full Answer >>
  4. How do commodity spot prices indicate future price movements?

    Commodity spot prices indicate future price movements because commodity futures prices are calculated using spot prices. ... Read Full Answer >>
  5. Where did market to market (MTM) accounting come from?

    Mark to market accounting has been around in concept since the stock market began; however, it was not officially part of ... Read Full Answer >>
  6. Why is market to market (MTM) accounting considered controversial?

    Mark to market accounting has been an integral component of generally accepted accounting principles (GAAP) in the United ... Read Full Answer >>
Related Articles
  1. Insurance

    Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.
  2. Investing Basics

    What Does Spot Price Mean?

    Spot price is the current price at which a security may be bought or sold.
  3. Investing Basics

    What Does a Clearing House Do?

    A clearing house is a third-party agency or separate entity that acts as a go-between for buyers and sellers in financial markets.
  4. Investing Basics

    What is Meant by Implied Volatility?

    The estimated volatility of a security's price.
  5. Economics

    How Gloomy Headlines Support Eurozone Stocks

    It's hard to miss the many headlines on Europe lately with news ranging from Greece’s debt saga to the details of ongoing European Central Bank stimulus.
  6. Chart Advisor

    Expect These Gold-Related Assets To Move Lower

    The spot gold price is trading within a long-term descending triangle. Traders may use this pattern to suggest gold and related assets are heading lower.
  7. Investing Basics

    Explaining Credit Spread

    A credit spread has two different meanings, one referring to bonds, the other to options.
  8. Options & Futures

    How Are Futures & Options Taxed?

    We present a basic introduction to the US tax processes of futures and options.
  9. Chart Advisor

    Strategic Traders Are Turning To Agriculture

    As summer approaches many commodity traders are looking for opportunities at the agriculture sector. We'll take a look at a few picks for how to trade the move higher.
  10. Fundamental Analysis

    What is a Forward Rate?

    Forward rate is used in both bond and currency trading to represent the current expectations of future bond interest rates or currency exchange rates.

You May Also Like

Hot Definitions
  1. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  2. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  3. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  4. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  5. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!