Advance commitment
A promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price. |
Similar financial terms
Advance funded pension planPension plan in which funds are set aside in advance of the date of retirement.
Advancement
Money or property given to a person by the deceased before death and intended as an advance against the beneficiary's share in the will.
Production-flow commitment
An agreement by the loan purchaser to allow the monthly loan quota to be delivered in batches.
Commitment
A trader is said to have a commitment when he assumes the obligation to accept or make delivery on a futures contract.
Commitment fee
A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced.
