Visible Supply

AAA

DEFINITION of 'Visible Supply'

The amount of a good that is currently being stored or transported. The visible supply is the amount of goods or commodities that are available to be bought or sold. This supply is important as it identifies a definite quantity of good available for purchase or delivery upon futures contracts.

INVESTOPEDIA EXPLAINS 'Visible Supply'

The price of a good is not completely influenced by the amount of visible supply. Because commodities, such as wheat, are often purchased through futures contracts long before delivery, prices are more likely to be influenced by future supply rather than what is available at that moment. In general, an increase in visible supply is considered to be a bearish signal, while a decrease is considered a bullish one.

RELATED TERMS
  1. Delivery

    The action by which an underlying commodity, security, cash value, ...
  2. Supply Chain

    The network created amongst different companies producing, handling ...
  3. Certificated Stock

    The stock of a commodity that has been inspected by qualified ...
  4. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  5. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
  6. In Sight

    A term describing deliverable grades of commodities underlying ...
Related Articles
  1. An Overview Of Commodities Trading
    Options & Futures

    An Overview Of Commodities Trading

  2. How To Invest In Commodities
    Investing Basics

    How To Invest In Commodities

  3. Play Foreign Currencies Against The ...
    Forex Education

    Play Foreign Currencies Against The ...

  4. Commodities: The Portfolio Hedge
    Active Trading

    Commodities: The Portfolio Hedge

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

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