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Accumulation is the purchase of a large quantity of a commodity by a speculator with the intention of capitalizing on future price increases.# Accumulation can create a cycle of speculation, self-fulfilling prophecies and inflation. Laws are often passed against certain types of accumulation to prevent tragedies and reduce economic instability. In the long run, investing in stocks has outperformed hoarding commodities. Exchange of Futures for Physical (EFP)
September 25, 2022 Futures to Physical Exchange (EFP) allows one party to exchange a futures contract for the actual underlying asset. GSCI (S&P)
September 25, 2022 The S&P GSCI is a benchmark commodity index that tracks the performance of the global commodity market. Gemology
September 25, 2022 Gemology is the science of identifying gemstones.# Gold Standard
September 25, 2022 The gold standard is a monetary system backed by the value of physical gold. Gross Processing Margin (GPM)
September 25, 2022 Gross Processing Margin (GPM) is the difference between the cost of a commodity and the revenue generated after the commodity has been sold as a finished product. Hardening
September 25, 2022 In the financial arena, the term hardening is commonly used to refer to a period of rising prices and decreasing volatility, especially in commodity trading. Horizontal Spread
September 25, 2022 A horizontal spread is a simultaneous long and short position in derivatives for the same underlying asset and strike price, but with different expiration dates. Intercontinental Exchange (ICE)
September 25, 2022 Intercontinental Exchange (ICE) is an American company that owns and operates financial and commodity markets and exchanges. Job Lot
September 25, 2022 A job lot is a futures contract, the par value of which is less than a standard lot. Resource Curse
September 25, 2022 The resource curse refers to countries that lag behind economically despite benefiting from valuable natural resources. Tick Size
September 25, 2022 Tick size - the minimum change in the price increment of a trading instrument.
– Tick sizes used to be in fractions (e.g. 1/16th of $1), but today they are mostly decimal based and expressed in cents. Timber Investment Management Organization (TIMO)
September 25, 2022 Institutional investors wishing to invest in timber and forest land often turn to Timber Investment Management Organizations (TIMO). United States Department of Agriculture (USDA)
September 25, 2022 USDA stands for United States Department of Agriculture and is a federal agency founded by Abraham Lincoln in 1862.# Warehouse Financing
September 25, 2022 Warehouse financing is a way for businesses to borrow money against their inventory. Witching Hour
September 25, 2022 The Witching Hour is the last hour of trading before options or other derivatives contracts expire. 1979 Energy Crisis
September 25, 2022 The 1979 energy crisis was one of two oil price shocks in the 1970s - the other was in 1973. 3P Oil Reserves
September 25, 2022 Category 3P oil reserves represent the total amount of estimated reserves, including all proved and unproved reserves to which the company has access. Agribusiness
September 25, 2022 Agribusiness is a combination of the words “agriculture” and “business” and refers to any business related to agriculture and commercial activities related to agriculture. American Option
September 25, 2022 An American option is a type of option contract that allows holders to exercise their rights at any time up to and including the expiration date. Application-Specific Integrated Circuit (ASIC)
September 25, 2022 An application-specific integrated circuit (ASIC) miner is a computerized device or hardware that uses an ASIC solely to mine bitcoin or another cryptocurrency. Arab League
September 25, 2022 The League of Arab States is a regional multinational organization of the Arabic-speaking countries of the African and Asian continents. Assignment
September 25, 2022 A cession is a transfer of rights or property from one person to another.# At The Money
September 25, 2022 In the money (ATM) are calls and puts where the exercise price is equal to or very close to the current market price of the underlying security. Atomic Swaps
September 25, 2022 An atomic swap is a cryptocurrency exchange between two parties who want to exchange tokens from different blockchains. Backwardation
September 25, 2022 Backwardation is when the current price of the underlying asset is higher than the prices traded in the futures market.