Warehouse Receipt

AAA

DEFINITION of 'Warehouse Receipt'

A receipt used in futures markets to guarantee the quantity and quality of a particular commodity being stored within an approved facility.

INVESTOPEDIA EXPLAINS 'Warehouse Receipt'

Rather than delivering the actual commodity, warehouse receipts are used to settle expiring futures contracts. Also referred to as a vault receipt, they are most often used when settling futures contracts that have precious metals as their underlying commodities.

RELATED TERMS
  1. Warehouse Bond

    A type of financial protection that assures an individual or ...
  2. Warehouse Financing

    A form of inventory financing in which loans are made to manufacturers ...
  3. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
  4. Expiration Date

    The last day that an options or futures contract is valid. When ...
  5. Basis Grade

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

    A contractual agreement, generally made on the trading floor ...
Related Articles
  1. Stock Safety: Top 3 Ways to Limit Your ...
    Options & Futures

    Stock Safety: Top 3 Ways to Limit Your ...

  2. Can You Buy Stock Insurace? 3 Strategies ...
    Options & Futures

    Can You Buy Stock Insurace? 3 Strategies ...

  3. How The Price Of Stock Futures Is Calculated
    Options & Futures

    How The Price Of Stock Futures Is Calculated

  4. Futures, Derivatives and Liquidity: ...
    Options & Futures

    Futures, Derivatives and Liquidity: ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

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

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center