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Advance commitment

• A promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price.

 
 Embedded terms in definition
 Asset
Contract
Futures contract
Futures
Offset
Purchase
Risk
Sales
Sell
 
 Related Terms
 Commitment
Commitment fee
Firm commitment underwriting
Percentage advance
Production flow commitment

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