Discount

What is Discount?

Discount meaning (1) The amount a price would be reduced to purchase a commodity of lesser grade; ( 2) sometimes used to refer to the price differences between futures of differentdelivery months, as in the phrase July at a discount to May indicating that the price for the July futures is lower than that of May.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

Tags: