ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Futures Market
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Spot Market
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Equity Market
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Commodity Market
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Detailed explanation-1: -In futures markets, delivery occurs at a specified future date. In spot markets, delivery happens at present. In options markets, the delivery may occur at any time before the option expires or becomes void. Commodities can also be traded on exchanges or over-the-counter (OTC).
Detailed explanation-2: -Commodity futures are bought and sold in commodity exchanges. These include exchanges like the New York Mercantile Exchange (NYMEX), London Metals Exchange (LME), Chicago Mercantile Exchange (CME) etc.
Detailed explanation-3: -A commodity futures contract is an agreement to buy or sell a particular commodity at a future date. The price and the amount of the commodity are fixed at the time of the agreement. Most contracts contemplate that the agreement will be fulfilled by actual delivery of the commodity.
Detailed explanation-4: -CFTC Overview The Commodity Futures Trading Commission is an independent U.S. government agency that regulates the U.S. derivatives markets, including futures, options, and swaps.