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.


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.

  1. Short (or Short Position)

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  2. Clearing House

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  3. Tender

    To invite bids for a project, or to accept a formal offer such ...
  4. Futures Contract

    A contractual agreement, generally made on the trading floor ...
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    A derivative contract through which two parties exchange financial ...
  6. Hedge

    Making an investment to reduce the risk of adverse price movements ...
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