What is the meaning of Advance commitment?

Advance commitment is a promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price approximately.

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APABarry Goldsmith. (2010). advance commitment. Retrieved September 20, 2026, from http://smartdefine.org/advance_commitment/definitions/1147283
ChicagoBarry Goldsmith. 2010. "advance commitment" http://smartdefine.org/advance_commitment/definitions/1147283 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, advance commitment, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/advance_commitment/definitions/1147283>.
MLABarry Goldsmith. "advance commitment" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/advance_commitment/definitions/1147283>