Warehouse Receipt

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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.

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