Definition of Warehouse receipt:
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.
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.
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.
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