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commitment |
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Commitment Describes a trader's obligation to accept or make delivery on a futures contract. Related: Open interest. Commitment 1. The legal obligation to undertake an activity in a given way at a given time in the future. Usually, commitment refers to the requirement for parties to a futures contract to make or receive delivery of the underlying commodities on the expiration date of the contract. 2. A liability. A commitment is the obligation to make good on an agreement at some point. For example, a borrower makes a commitment to pay back a loan by a certain time. commitment (loan) An agreement by a lender to extend a loan on certain terms and conditions and by a certain date. Language making the “commitment” subject to credit approval or underwriting are not true commitments at all, but merely quotes. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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