A multiplicative factor that is applied to a DELIVERABLE ASSET under an EXCHANGETRADED DERIVATIVE contract to determine the precise amount that needs to be delivered. Since different types and grades are often deliverable, the seller of the contract must use a conversion factor to make the appropriate adjustment. See also CHEAPEST TO DELIVER.
What is CONVERSION FACTOR?
Featuring Black’s Law Dictionary
Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.
- War Drafts – What You Should Know About the Return of the Draft
- Fake News: History, Laws, & Is It Going To Ruin The Election… Again?
- Privacy Laws: Why It Matters, What To Do, & Important FAQs
- Deportation: Human Rights, FAQ, & What To Do
- Flexible Spending Account (FSA): Limits, Expenses & FAQ
- Census 2020: Everything You Need To Know Before You Say No
- What To Expect With An IRA: Traditional, Roth, SEP, & SIMPLE
- Outdated & Weird Laws You Can Still Be Charged With
- 401(K) Types, Loans, Contribution Limits, & Benefits
- Right To Know Law: Everything You Need To Know
- Best Way to Find Someone in Jail for Free
- How Do You Look up License Plate Numbers?
- What Is A Police Welfare Check?
- Best Way to Run a Free Arrest Warrant Check
- Signing a Letter on Someone Else’s Behalf
- Best Way to Write a Professional Letter to a Judge
- How To Find A Name & Address Using A License Plate Number
- How To Find An Inmate’s Release Date
- How to Transfer a Car Title When The Owner Is Deceased
- What Rights Do Convicted Felons Lose?