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Widening Basis

The basis can develop a widening trend when the spot price of an asset/ commodity increases faster than the futures...

Commodity Warrant

A warrant that gives the holder the right to receive a fixed quantity of a certain commodity (such as wheat,...

Prepaid Forward

A forward contract that calls for payment today and delivery of the underlying asset or commodity at a future date....

Commodity

A tangible item that may be traded between market participants: buyers and sellers. In this sense, commodities are marketable goods...

Commodity Price Risk

The financial risk that impacts an entity’s financial performance/ profitability due to fluctuations (volatility) in the prices of commodities in...

Commodity Price Risk

The risk (price risk) that arises from potential changes in the prices of commodities (which in turn affect the derivative...

Commodity Semi-Fixed Swap

A semi-fixed swap which allows oil consumers to swap into a lower rate if prices go below a specific trigger...

Crush Spread Option

An option that has a crush spread as underlying. This option is used in the soybeans futures market and is...

Crack Option

An option that gives the holder the right to exchange a base asset (a crude commodity) for one or two...

Crack Spread

A commodity trading strategy which involves the purchase of crude oil futures and the simultaneous sale of gasoline and heating...