Commodity Swap Law and Legal Definition
A commodity swap is an agreement whereby a floating price is exchanged for a fixed price over a specified period. It is a swap in which exchanged cash flows are dependent on the price of an underlying commodity. The swap is accomplished through a series of payments made through a bank or other intermediary. The purpose of the commodity swap is to allow commodity producers and users to predict more accurately their revenue or raw material costs.
Legal Definition list
Related Legal Terms
- Affiliate of a Futures Commission Merchant, Commodity Trading Advisor, Commodity Pool Operator or Introducing Broker
- Agricultural Commodity
- Agricultural Commodity Cooperator
- Agricultural Commodity Producer
- Bond Swap
- Bulk Agricultural Commodity
- Carry-over of Nonbasic Agricultural Commodity
- Commercial Commodity
- Commodity
- Commodity Account
