- commission
- The fee which clearing-houses charge their clients to buy and sell futures and futures options contracts. The fee that brokers charge their clients is also called a commission. The CENTER ONLINE Futures Glossary————The fee paid to a broker to execute a trade, based on number of shares, bonds, options, and/or their dollar value. In 1975, deregulation led to the establishment of discount brokers, who charge lower commissions than full service brokers. Full service brokers offer advice and usually have a staff of analysts who follow specific industries. Discount brokers simply execute a client's order and usually do not offer an opinion on a stock. Also known as a round-turn. Commissions are known as round-turn only in futures trading, since the commission is assessed only after liquidation of the position. Bloomberg Financial Dictionary————For futures contracts, the one-time fee charged by a broker to cover the trades a client makes to open and close each position. It is payable when the client exits the position. Also called a round-turn. Commissions on options are usually half on initiation and paid half on liquidation. Chicago Mercantile Exchange Glossary————The fee that a broker may charge clients for dealing on their behalf. Exchange Handbook Glossary————The charge made by a stockbroker or the fee a financial adviser makes from a company whose products have been sold, generally based on the value of the sale. Financial Services Glossary
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▪ I. commission com‧mis‧sion 1 [kəˈmɪʆn] noun1. [countable, uncountable] FINANCE COMMERCE an amount of money paid to someone according to the value of goods, shares, bonds etc they have sold:• He didn't charge a commission on trades, as other brokers do.
2. [countable] a request for a writer, musician, or artist to produce a piece of work for which they are paid:• a commission from the company for a new sculpture
3. [countable] LAW ORGANIZATIONS an official organization that ensures that the law is obeyed in a particular activity:• the New Jersey Casino Control Commission
• the Equal Employment Opportunity Commission
4. [countable] ORGANIZATIONS a temporary official organization looking at problems in a particular area and suggesting changes:• A state senate commission was created last year to study tax reform.
— see also Federal Communications Commission[m0] ▪ II. commission commission 2 verb [transitive]to formally ask someone to produce a report, work of art etc:• One of the new team's first acts was to commission a report on Fox's operations.
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Ⅰ.commission UK US /kəˈmɪʃən/ noun► [C or U] COMMERCE a payment to someone who sells homes, products, investments, etc., which is directly related to the amount they sell, or the practice of receiving these payments: make/pay/receive a commission »The airline agreed to pay travel agents a 3% commission.
»His monthly salary, which is based on commissions, has dropped from about $7,000 to $1,000.
be on commission »People often work harder when they're on commission.
► [C] (also Commission) GOVERNMENT a group of people who have been officially chosen to examine a problem and advise on the best action to take: appoint/create/establish/set up a commission »Congress appointed a commission to investigate the causes of the financial crisis.
► [C] (also Commission) GOVERNMENT an official organization whose job is to manage a particular activity, suggest laws relating to the activity, and make certain that laws are obeyed: communications/energy/planning, etc. commission »The Energy Commission announced rules that bar municipal utilities from signing new contracts with coal-fired power plants.
► COMMERCE a request to do a particular piece of work for someone: accept/get/receive a commission »When he was 19, he got a commission to write an orchestra piece.
Ⅱ.commission UK US }} /kəˈmɪʃən/ verb [T]► to ask someone do a particular piece of work for you: »The newspaper commissioned a series of articles on the fashion industry.
Financial and business terms. 2012.
