Commercial contracts calling for the purchase or sale of specified quantities of a good at specified future dates. The good in question may be grain, livestock, precious metals, or financial instruments such as treasury bills. Up until the time the contract calls for the delivery of the good, the contract is subject to speculation. Futures contracts originated in the trade in agricultural commodities; for example, American grain farmers were able to sell their harvest in advance on the Chicago Board of Trade, a commodity exchange.

Learn more about futures with a free trial on

In finance, seniority refers to the order of repayment in the event of bankruptcy. Senior debt must be repaid before subordinated debt is repaid. Bonds that have the same seniority in a company's capital structure are described as being pari passu.

The levels of bond recognised in FpML (Financial products Markup Language) are as follows:

FpML Value Desription
Senior Top precedence
SubTier1 Subordinate Tier 1
SubUpperTier2 Subordinate, Upper Tier 2
SubLowerTier2 Subordinate, Lower Tier 2
SubTier3 Subordinate, Tier 3

See also

Search another word or see financialon Dictionary | Thesaurus |Spanish
Copyright © 2015, LLC. All rights reserved.
  • Please Login or Sign Up to use the Recent Searches feature