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Term of the Day
commodity contract
physicals
daily price limit
Definition
An agreement to
buy
or
sell
a
commodity
for a
fixed
price
on a certain date.
Buyers
use these
contracts
to
avoid
the
risk
of a sudden
spike
in prices.
Sellers
use these contracts to
lock in
a certain
price
.
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Popular 'Futures' Terms
security
commodity
derivative
risk
securities
intrinsic value
purchase
futures
outstanding
forward contract
Related Terms
physical commodity
daily price limit
physicals
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