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.
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.
Roll forward refers to extending a derivatives contract by closing a contract that is about to expire and opening another contract at the current market price for the same underlying asset with a closing date in the future.
Agribusiness is a combination of the words “agriculture” and “business” and refers to any business related to agriculture and commercial activities related to agriculture.
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.
Flattening of the yield curve is when short-term and long-term bonds do not undergo noticeable changes in rates. This makes long-term bonds less attractive to investors.