Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

choke price

The choke price is reached when the price rises high enough that demand for that item (or commodity – the term is often used in commodities trading) reaches zero. The choke price is the exact point at which demand ceases. Buyers are also not interested in anything with a higher price, but the choke price is the lowest for which there is zero demand.

The choke price is used in demand and supply analysis.

 

choke price in the news

In December 2012 a writer for FT Alphaville noted the effect of...

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