Commodity Exchange III
Commerce SSS1 Third Term
WEEK 3
Commodity Exchange III
Performance Objectives
The student should be able to:
1. State the methods of trading.
2. Explain spot, forward futures and open outcry.
Content
Types of Commodity Exchange
The following are the types or forms of commodity exchange:
1. Spot Trading: It is a system or type of commodity trading or transaction on the spot where delivery takes place immediately as well as payment. The seller may receive part payment before the commodity is delivered or full payment after the commodity is received.
2. Forward Future: This can be regarded as a forward contract. It is a.... View More
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