Warehouse receipt

Warehouse receipt,

Definition of Warehouse receipt:

  1. Document of title (signed or certified by the warehouse keeper) guaranteeing existence and availability of a specified quantity and quality of a commodity, and used as an instrument of transfer in cash (spot) and futures transactions.

  2. Warehouse receipts are a part of the operational business processing involved with futures contracts for physical delivery. Rather than immediately moving actual commodities backing a contract, warehouse receipts are used to settle futures contracts. For precious metals, warehouse receipts may also be referred to as vault receipts.

  3. Receipt of goods or materials left for safekeeping in a warehouse. It is a non-negotiable instrument if it permits delivery only to a named entity; a negotiable instrument when bearer or made out to the order of the holder.

  4. A warehouse receipt is a type of documentation used in the futures markets to guarantee the quantity and quality of a particular commodity being stored within an approved facility.

Meaning of Warehouse receipt & Warehouse receipt Definition