Retender

Filed Under » ,
Dictionary Says

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.
Investopedia Says

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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Clearing House

    An agency or ...
  2. Futures Contract

    A contractual ...
  3. Short (or Short Position)

    1. The sale of a ...
  4. Tender

    To invite bids ...
  5. Risk Capital

    Investment funds ...
  6. Futures

    A financial ...
  7. Hong Kong Stock Exchange (HKG) .HK

    One of the ...
  8. Cantor Futures Exchange

    An electronic, ...
  9. Hollywood Stock Exchange - HSX

    An online ...
  10. Commodity Futures Trading Commission ...

    An independent ...

Articles Of Interest

  1. Interpreting Volume For The Futures Market

    Learn how to read the volume reports, look at the relation to liquidity and interpret volume using open interest.
  2. Are Derivatives Safe For Retail Investors?

    These vehicles have gotten a bad rap in the press. Find out whether they deserve it.
  3. How Companies Use Derivatives To Hedge Risk

    Derivatives can reduce the risks associated with changes in foreign exchange rates, interest rates and commodity prices.
  4. Commodities: The Portfolio Hedge

    These diverse asset classes can provide downside protection and upside potential. Find out how to use them.
  5. 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.
  6. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  7. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  8. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  9. Simplify Your Portfolio

    Faced with an overabundance of choices, many investors forget to stick to the basics.
  10. Hedging With ETFs: A Cost-Effective Alternative

    The benefits of ETFs for hedging are clear and investors of all sizes are taking notice.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center