contract grades

contract grades definition - business

contract grades

In commodities trading, the standards that a commodity must meet in order to be used for delivery on a futures contract. For example, the Chicago Board of Trade requires silver deliveries to take place with 1,000- or 1,100-ounce bars assaying at a fineness of not less than 0.999.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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