Commodities Exchange
Commodities Exchange is a market which is trade in goods. This is a separate market of products or product groups, which appear on the production or consumer characteristics.
Commodities Exchange is different from the usual market so that trading takes place on a pre-established rules. The exchange registers the trade usages, establishes standards for the goods, develops a model of exchange-traded contracts, carries out the quotations of the prices, regulates disputes and makes a lot of useful things.
At present the objects of the international trade of Commodities Exchange is about 70 kinds of the goods, which account for about 30% of international trade.
We single out the main groups of goods, which is on the Commodities Exchange market:
- Precious metals, gold, platinum, silver, copper aluminium, Nickel and many others.
- Hydrocarbons and energy, oil, gas, oil, coal and others.
- Food products, corn, wheat, soybeans, grain, as well as soft commodities - sugar,cocoa, coffee, cotton and many others.
Earlier on the Commodities Exchange trade was with cash batches of goods, now most of the transactions with the goods flows in the form of futures contracts on these goods. So that the goods on the market is not present, he sells is purchased without presentation and examination.
The transactions are made on the basis of standard exchange contracts, which regulate the quantity, timing and quality of goods. In simple words, the seller on the Commodities Exchange buyer transfers is not a commodity, and only a document that confirms the right of ownership to the goods.
