Seller's Call

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DEFINITION of 'Seller's Call'

An agreement between a buyer and a seller for a specific grade and quantity of commodity that allows a period of time for the seller to set the price a fixed number of points above (or below) a specified delivery month's futures price.

INVESTOPEDIA EXPLAINS 'Seller's Call'

Also known as a "call purchase", this agreement gives the seller the right to fix the price of the commodity at some point in the future. In other words, this is the same as a buyer's call, except it's the seller that has the right to determine when the price is fixed.

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