Commodity glossary F
Last Updated on Tuesday, 19 May 2009 10:54
Monday, 18 May 2009 14:23
- A company that processes refined (cathodes, ingots, billet etc) or semi-fabricated (extrusions, sheet metal etc) metal to produce products for sale to end consumers.
- The nominal value given to legal tender coin or currency
- The theoretical price at which a futures contract would be expected to trade
- The proportion of precious metal in an alloy expressed as parts in 1,000; thus 995 or two nines five is 995/1000 or 99.5% pure
- The weight of gold contained in a bar, coin or bullion as determined by multiplying the gross weight by the fineness.
- The London gold fixing takes place twice daily (10.30 am and 3.00 pm) over the telephone and sets a price at which all known orders to buy and sell gold on a spot basis at the time of the fix can be settled. The fix is widely used as the benchmark for spot transactions throughout the market.
- In technical analysis, one of the basic chart patterns. In a bull market a flag occurs when prices consolidate for a period then continue to rise. In a bear market the converse occurs, ie, prices resume falling after a period of consolidation.
FLAT RATE FORWARDS
- Forward contracts offering a constant contango throughout the life of the contract
- The first public offering of a company's shares or securities on a regulated exchange.
- A recognised low point in market prices. This may be a point the market does not expect the price to fall below, the lowest price achieved before the market rises or a level set by a customer as a minimum selling price.
- Free on Board. A FOB price usually includes cost of transport, insurance and loading onto a vessel at the port of departure."
- The difference between spot and forward quotations which will be determined by money and precious metal interest rates and storage charges
- Purchase or sale for delivery and payment at an agreed date in the future
- The study of basic underlying factors which will affect the supply and demand of the commodity being traded.
- An agreement to buy or sell a specific commodity or financial instrument on a set date in the future at a set price.