how to buy commodities
All wholesale transactions on purchase-sale of the goods, which are on stock exchanges, represent - the use of standard contracts. As these contracts do not involve the immediate and obligatory fulfillment of the contract (delivery of goods), they got the name - futures (futures contracts). This type of contracts strictly uniform rules, he is in accordance with the exchange rules standardized and contains a clear and specific requirements concerning the quality and quantity of the goods, terms and place of delivery and the rest. how to buy commodities: the Price of the goods, is the only and is not a constant value, at the conclusion of the contract on the commodity exchange, and is set at the moment of conclusion of the transaction the seller and the buyer, or their representatives of the exchange - brokers.
Thus, how to buy commodities, a transaction of purchase and sale on a commodity exchange, as a rule, is done without prior inspection of the goods, for a certain number of futures. In turn, futures, in contrast to the contracts for the delivery of the actual commodity, can be performed in two ways:
The first is the method of offset, i.e. the conclusion of the opposite transactions of equal quantity of the goods in any day in accordance with the terms of delivery.
The second way is the delivery caused by the contract goods.
Although on a commodity exchange transactions, culminating with the delivery of the goods, are rare, they account for a small proportion of the exchange's turnover, for example, on American stock exchanges, their share is in the range of 1 %, the volume of transactions. The possibility of delivery of the goods at the exchange warehouse, as of its receipt to the warehouse, it plays a very important functional role - bond futures market with the market of the real goods.
That's why, on a commodity exchange there is always the opportunity to buy or sale is not virtual, but real goods, in spite of the fact that the modern commodity exchanges in the overwhelming majority represent the futures and options market.
On a commodity exchange - all futures contracts shall be mandatorily registered in the clearing house of the commodity exchange. The registration of a futures contract, concluded his making the clearing house of the guarantee Deposit for the goods (in the form of a Deposit, usually 10-15 % of the contract value and the margin, which is an additional Deposit in case of changes in the value of the goods.
After the contract is registered with the clearing house of the commodity exchange, it can be unilaterally eliminated any of the parties, through the conclusion of the offset of the transaction. In this case, the side that eliminated the contract, can be financially win, but then gets in the clearing house of your winnings, or may lose, in this case - paying in the clearing house of the amount of his loss.
