EP wines?

originally posted by Peter Creasey:

Jayson, not sure how to respond as EP is a new term to me.

. . . . . Pete
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Ok. That’s a little confusing considering how you worded your OP, but I’m assuming it’s not a new concept to you. Wine is offered for sale at a price before its release into the retail market, for Bordeaux two years in advance. Sometimes these wines are strictly allocated. Sometimes not.

I rarely have bought EP. No Bordeaux in years. Now anything I might commit to EP are pre-release offers of random wines. I have no highly prized Burgundy allocations.
 
Okay, thanks, guys. I thought the term EP had some kind of connotation beyond buying futures.

Enough said.

Thanks again for your thoughtful responses.

. . . . . . Pete
 
originally posted by Peter Creasey:

Okay, thanks, guys. I thought the term EP had come kind of connotation beyond buying futures.

Enough said.

Thanks again for your thoughtful responses.

. . . . . . Pete
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no worries.
 
originally posted by Cole Kendall:
And, because I am a pedant, a wine "future" is really a forward contract.
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In my trading days, futures contracts were those traded on exchanges whereas forward contracts were those made over-the-counter with other financial institutions.
 
originally posted by Oswaldo Costa:
originally posted by Cole Kendall:
And, because I am a pedant, a wine "future" is really a forward contract.
Click to expand...

In my trading days, futures contracts were those traded on exchanges whereas forward contracts were those made over-the-counter with other financial institutions.
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Yes and a forward (like an en primeur) was usually satisfied by delivery while a future (in the commodity or financial world) is often settled in cash at the clearing house, with little expectation of delivery. There was always a story about a guy taking delivery after a brutal tread (and there are occasionally squeezes when there is an imbalance between open interest and available supply) but most futures do not involve actual possession of the thing and most forwards do.
 
originally posted by Cole Kendall:
originally posted by Oswaldo Costa:
originally posted by Cole Kendall:
And, because I am a pedant, a wine "future" is really a forward contract.
Click to expand...

In my trading days, futures contracts were those traded on exchanges whereas forward contracts were those made over-the-counter with other financial institutions.
Click to expand...

Yes and a forward (like an en primeur) was usually satisfied by delivery while a future (in the commodity or financial world) is often settled in cash at the clearing house, with little expectation of delivery. There was always a story about a guy taking delivery after a brutal tread (and there are occasionally squeezes when there is an imbalance between open interest and available supply) but most futures do not involve actual possession of the thing and most forwards do.
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Maybe things have changed but our forwards (on various currencies and stock indices, always structured as put/call combos) were always settled in cash, while energy futures buyers could choose delivery (if they had storage facilities).
 
Fine; futures can be settled with delivery but are generally settled in cash. Forwards can be settled in cash but are generally settled by delivery. Which one is more like EP?
 
originally posted by Cole Kendall:
Fine; futures can be settled with delivery but are generally settled in cash. Forwards can be settled in cash but are generally settled by delivery. Which one is more like EP?
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Closer to a forward contract, no doubt.
 
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