What does commodities exchange mean?
Definitions for commodities exchange
com·modi·ties ex·change
This dictionary definitions page includes all the possible meanings, example usage and translations of the word commodities exchange.
Princeton's WordNet
commodity exchange, commodities exchange, commodities marketnoun
an exchange for buying and selling commodities for future delivery
Wikipedia
commodities exchange
A commodities exchange is an exchange, or market, where various commodities are traded. Most commodity markets around the world trade in agricultural products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies, oil, and metals). Trading includes and various types of derivatives contracts based on these commodities, such as forwards, futures and options, as well as spot trades (for immediate delivery). A futures contract provides that an agreed quantity and quality of the commodity will be delivered at some agreed future date. A farmer raising corn can sell a futures contract on his corn, which will not be harvested for several months, and gets a guarantee of the price he will be paid when he delivers; a breakfast cereal producer buys the contract and gets a guarantee that the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises. Speculators and investors also buy and sell these contracts to try to make a profit; they provide liquidity to the system. Some of these exchanges also trade financial derivatives, such as interest rate and foreign exchange futures, as well as other instruments such as ocean freight contracts and environmental instruments. In some cases these are mentioned in the lists below.
ChatGPT
commodities exchange
A commodities exchange is a centralized marketplace where people trade commodity products such as minerals, agricultural products, energy, and metals. This includes tangible items such as gold, oil, natural gas, wheat, and cattle as well as options, futures contracts and other financial derivatives related to these commodities. The exchanges facilitate standardized contracts, the quality, quantity, and delivery points of which are defined and regulated by the exchange. Prices are settled on the spot in such exchanges, providing a transparent trading system for buyers and sellers.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of commodities exchange in Chaldean Numerology is: 3
Pythagorean Numerology
The numerical value of commodities exchange in Pythagorean Numerology is: 3
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"commodities exchange." Definitions.net. STANDS4 LLC, 2024. Web. 19 Apr. 2024. <https://www.definitions.net/definition/commodities+exchange>.
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