This settlement can happen through physical delivery in the asset or by cash settlement, the place the real difference between the contract price along with the market price is exchanged in place of the asset itself. Forward contracts, contrary to futures, will not be marked to market daily, as well as their worth is determined at settlement determ… Read More

A futures contract is really a legally binding settlement to obtain or provide a particular amount of the commodity at a predetermined price on a upcoming day. These contracts:Commodity prices can fluctuate sharply resulting from geopolitical tensions, normal disasters, or modifying supply-demand from customers dynamics. These unexpected price acti… Read More