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Retender |
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Retender To sell the delivery notice on a futures contract. When a futures contract matures, the seller of the underlying asset gives his/her intent to deliver to the clearing house, which then gives delivery notice to the buyer. The buyer then may retender, or sell the delivery notice, to a third party to ensure that the buyer does not actually receive the underlying asset. Retendering occurs because most futures investors do not wish to actually receive what they buy; sometimes, it may be avoided by settling in cash. It is important to note that some futures contracts do not permit retendering. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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