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SCO vs FCO

SCO is the seller's indicative offer. FCO is the firm one. The confusion causes most 'the seller changed the price' complaints in the trade.

At a glance

CriterionSCOFCO
Price commitmentIndicative, subject to prior saleFirm for validity
Quantity commitmentIndicativeFirm
TriggerMarketing outreachBuyer ICPO / LOI
ConfidentialityOften broadcastOne buyer at a time
Validity'Until sold'3-5 banking days
Use SCO when

Use the SCO to signal availability to a wide market.

Get the SCO template →
Use FCO when

Use the FCO for a specific buyer that has committed via ICPO or LOI.

Get the FCO template →

FAQ

Should a buyer sign an SCO?
No. SCO is informational. Sign only against the FCO or SPA.
Can an SCO price be honoured?
Not automatically. If the buyer wants that price, they must issue LOI/ICPO fast enough to trigger a matching FCO.

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