Warehouse Receipt
A receipt used in futures markets to guarantee the quantity and quality of a particular commodity being stored within an approved facility. Investopedia Says:
Rather than delivering the actual commodity, warehouse receipts are used to settle expiring futures contracts. Also referred to as a vault receipt, they are most often used when settling futures contracts that have precious metals as their underlying commodities. Related Terms:
Approved Delivery Facility
Basis Grade
Delivery Date
Delivery Instrument
Expiration
Futures Contract
Precious Metal
Vault Receipt |