Retender
Definition of 'Retender'The sale of a delivery notice for the underlying asset in a futures contract. A retender (also spelled re-tender) occurs when the buyer of a futures contract doesn't want to receive the underlying asset, which could be a complicated commodity such as corn or oil. By retendering the delivery, or tender, notice, they assure that the assets get delivered to the buyer of the notice instead. |
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Investopedia explains 'Retender'Many traders of futures contracts want to bet on the direction in which they think the price of a particular commodity is going to move. They do not want to actually buy or receive the tangible asset that the contract is based on. Not all futures contracts allow for retendering, and some provide for cash settlement. |
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