Commodity Exchange III

Commerce SSS1 Third Term


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.


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

Subscribe now to gain full access to this lesson note

Take Me There

Click here to gain access to the full notes.