---

InDerivative marketsfutures contracts on commodities are bought and sold (futures markets) or where options on equities, futures, or currencies are bought and sold (options markets).Commodity markets refer to markets whereinstitutions engage in the trade of perishable goods, such as natural resources and agricultural produce. However, since the value of these commodities are extremely volatile, companies typically do not engage in ‘spot trading’. Instead, the primary instrument traded in commodities markets are derivative contracts, including but not MScFE 560 Financial Markets–Notes (1) Module 1: Unit 1©2019 -WorldQuant University –All rights reserved.8limited to futures contracts, that specifies transfer at a future date. Equally commodities markets are public, and therefore allow investors to acquire and trade commodities exclusively for profit.

Edit | Delete | Back to List