What to do about commodity exchanges
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martino
Apprentice
Joined: 28 Jul 2004
Posts: 2
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 Posted: 06/03/08 - 07:02 Post subject: |
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| Hello there people. My name is Richard and I would appreciate if you could give me some explanation about one specific type of market. I have to do a school paper about different types of exchange markets. So far everything is going well, but I don’t know what to do about commodity exchanges. Can some of you explain to me how they work? Thank you in advance. |
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kris
Apprentice
Joined: 18 Sep 2006
Posts: 2
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| Posted: 07/03/08 - 01:28 Post subject: |
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| Hi there Richard. Well, I’ll be more than happy with your schoolwork. As you may presume, commodity exchanges are markets in which objects of trade are various commodities. Basically, it works on the same principles as other markets. Commodities that are traded this way are, for example, wheat, sugar, cotton, coffee etc. Commodities are usually trade by using future options although some other instruments can be used, such as swaps, interest and freight contracts. Commodities markets usually are specialized for one product or group of products. Major markets are CME Group in Chicago, New York Mercantile Exchange. Then, you have Dalian commodity exchange in China, London Metal Exchange and so on. Well, that would be all from me. If you have some other questions regarding this, feel free to ask. Bye! |
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