Seller's Call

AAA

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.

RELATED TERMS
  1. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  2. Basis Grade

    The minimum accepted standard that a deliverable commodity must ...
  3. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  4. Buyer's Call

    An agreement between a buyer and seller whereby a commodity purchase ...
  5. Doomsday Call

    A call option that is added to a bond and allows the issuer to ...
  6. Split Close

    A situation that refers to price differences within a series ...
Related Articles
  1. Interpreting Volume For The Futures ...
    Options & Futures

    Interpreting Volume For The Futures ...

  2. Futures Fundamentals
    Insurance

    Futures Fundamentals

  3. Curious About Stock Index Futures? Read ...
    Options & Futures

    Curious About Stock Index Futures? Read ...

  4. The Best Day-Trading Schools
    Trading Strategies

    The Best Day-Trading Schools

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center