Term
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Definition
| Deferred delivery of some asset at an agreed upon price today |
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Term
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Definition
| Like a forward contract with more precise requirements |
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Term
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Definition
| Commits to purchasing commodity at expiry date |
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Term
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Definition
| Commits to delivering commodity at expiry date |
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Term
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Definition
| Middleman for futures contracts |
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Term
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Definition
| Outstanding long and short contracts held at a clearinghouse |
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Term
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Definition
| Futures price and spot price must converge at maturity |
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Term
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Definition
| Futures price is equal to the expected future spot price |
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Term
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Definition
| Futures price will be bid down in order to be lower than the expected future spot price and give speculators a reason to take a long position |
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Term
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Definition
| Purchasers rather than suppliers are hedgers |
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Term
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Definition
| If futures prices are too high, short the futures contract and buy stocks in the index |
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