On Track


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.


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.

  1. Free On Board - FOB

    A trade term requiring the seller to deliver goods on board a ...
  2. Carrying Charge Market

    A futures market where contracts with maturities further into ...
  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. ...
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  1. Do hedge funds invest in commodities?

    There are several hedge funds that invest in commodities. Many hedge funds have broad macroeconomic strategies and invest ... Read Full Answer >>
  2. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  3. Can mutual funds invest in commodities?

    Mutual funds can invest in commodities. In fact, mutual funds may provide a better way for investors to gain exposure to ... Read Full Answer >>
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    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
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    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
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