Corporate & Commercial
What Is Commercial?
The term commercial relates to commerce or general business activity. In the investment field, the term commercial is used to refer to a trading entity engaged in business activities that are hedged by positions in the futures or options markets.
A commercial entity plays an active role in the futures and forward markets, ranging from the initial production to the final sales. While the term is also widely used in other areas of finance and everyday life, it generally denotes an activity that pertains to business or one that has a profit motive.
A commercial may also refer to an advertisement broadcast over a media channel.