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Differential |
Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia, Hutchinson | 0.01 sec. |
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Differential A small charge added to the purchase price and subtracted from the selling price by the dealer for odd-lot quantities.
Differential 1. The degree of change in quality of the underlying asset on a futures contract that is allowed. Every futures contract specifies the quality of the commodity underlying it that must be delivered in order for the seller to fulfill the contract. The differential allows the seller to deliver a good of a different quality, at least within certain limits. Not all futures contracts allow for differentials. 2. A change in the location of delivery that some futures contracts allow the seller to make at his/her discretion. 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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