Commitment
A trader is said to have a commitment when he assumes the obligation to accept or make delivery on a futures contract. |
Similar financial terms
Advance commitmentA 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.
Production-flow commitment
An agreement by the loan purchaser to allow the monthly loan quota to be delivered in batches.
Commitment fee
A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced.
