Important Vocabulary
- Futures: Contracts to buy or sell fixed quantities of a commodity, currency, or financial asset at a future date, at a price fixed at the time of making the contract
- Options: Contracts giving the right, but not the obligation, to buy or sell a security, a currency, or a commodity at a fixed price during a certain period of time
- Commodities: Raw materials or primary products (metals, cereals, coffee, etc.) that are traded in special markets
- Derivatives: A general name for all financial instruments whose price depends on the movement of another price
- Hedging: Making contracts to buy or sell a commodity or financial asset at a pre-arranged price in the future as protection or ‘insurance’ against price changes
- Speculation: Buying securities or other assets in the hope of making a capital gain by selling them at a higher price (or selling them in the hope of buying them back at a lower price)
Finding the Opposite of the Terms Below
- appreciate – depreciate
- call – put
- discount – premium
- drought – flood
- floating – fixed
- hedging – speculation
- spot market – future market
- strike price – market price
Extracted From
MacKenzie, I. (2002). English for Business Studies: A course for Business Studies and Economics students (2nd ed.). Cambridge University Press.
