l]
| 1. | of or pertaining to difference or diversity. |
| 2. | constituting a difference; distinguishing; distinctive: a differential feature. |
| 3. | exhibiting or depending upon a difference or distinction. |
| 4. | Physics, Machinery. pertaining to or involving the difference of two or more motions, forces, etc. |
| 5. | Mathematics. pertaining to or involving a derivative or derivatives. |
| 6. | a difference or the amount of difference, as in rate, cost, quantity, degree, or quality, between things that are comparable. |
| 7. | Also called differential gear. Machinery. an epicyclic train of gears designed to permit two or more shafts to rotate at different speeds, as a set of gears in an automobile permitting the rear wheels to be driven at different speeds when the car is turning. |
| 8. | Mathematics.
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| 9. | Commerce.
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| 10. | Physics. the quantitative difference between two or more forces, motions, etc.: a pressure differential. |
differential
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Differential
The amount of adjustment of the delivery location and grade of deliverables that a futures contract permits. Also known as "allowance. "
Investopedia Commentary
Some futures contracts allow the short position to adjust the location of the delivery and/or the grade of commodity being delivered. The permitted differentials are set in relation to a central location or the par basis grade.
Related Links
Futures Fundamentals
See also: Actual, Approved Delivery Facility, Basis Grade, Certificated Stock, Delivery Instrument
differential
In commodities trading, the premium or discount in the futures contract price caused by delivering a commodity that does not exactly meet the standards fixed by the exchange. Allowances for these differentials are included in the contract specifications.
See odd-lot differential.
differential (dĭf'ə-rěn'shəl) Pronunciation Key
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