Definitions from Black's Law Dictionary: 2nd Edition and Ballentine's Law Dictionary as are available for each term in each dictionary.
  • Ballentine's Law Dictionary

    Contracts for the sale and future delivery of stocks or commodities, wherein either party may waive delivery and receive or pay the difference in market price at the time set for delivery. See 71 Miss. 514, 14 South. 33.

  • Black's Law Dictionary: 2nd Edition

    This term has grown out of those purely speculative transactions, in which there is a nominal contract of sale for future delivery, but where in fact none is ever intended or executed. The nominal seller does not have or expect to have the stock or merchandise he purports to sell, nor does the nominal buyer expect to receive it or to pay the price. Instead of that, a percentage or margin is paid, which is increased or diminished as the market rates go up or down, and accounted for in the buyer. King v. Quidnick Co., 14 R. I. 138; Lemon-ius v. Mayer, 71 Miss. 514, 14 South. 33; Plank v. Jackson, 128 Ind. 424, 26 N. E. 568.