A depository receipt is a document issued to holders of futures contracts, especially for precious metals.
It gives the owner the right to revoke or move the underlying asset of the contract.
Most buyers prefer to store their metals in existing storage as moving them is expensive and may prevent the owner from selling the metals on the exchange.
The United States issued gold certificates, the face value of which was identical to their face value in dollars, from 1879 to 1934, when the country abandoned the gold standard.
Agribusiness is a combination of the words “agriculture” and “business” and refers to any business related to agriculture and commercial activities related to agriculture.
Cash and carry arbitrage seeks to exploit pricing inefficiencies between the spot and futures markets for an asset by going long on the spot market and going short on the futures contract.
Documentary collection is a method of trade finance in which the exporter’s bank sends documents to the importer’s bank and receives payment for the shipped goods.
Futures contracts are financial derivatives that oblige the buyer to purchase some underlying asset (or the seller to sell that asset) at a predetermined price and date in the future.
Heating Degree Day (HDD) measures the average number of days the temperature falls below 65 degrees Fahrenheit. At this temperature, heating systems are turned on in buildings to maintain an average temperature of 70 degrees.