Premium
Definition
(1) The additional payment allowed by exchange regulation for delivery of higher-than-required standards or grades of a commodity against a futures contract. (2) In speaking of price relationships between different delivery months of a given commodity, one is said to be ""trading at a premium'' over another when its price is greater than that of the other. (3) In financial instruments, the dollar amount by which a security trades above its principal value. See Option Premium.
Related Terms Other terms related to 'Premium' starting with the letter 'P' Position, Price Discovery, Pulpit, Payment In Kind PIK Program, Put Option
Browse by Letter » A B C D E F G H I L M N O P R S T U V W Y
| 
