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Spot vs Futures Markets In Commodity Trading

Spot Market is where commodities are traded for immediate delivery at the current price.Futures Market is where you agree to buy or sell later at a fixed price decided today.<br><br>

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Spot vs Futures Markets In Commodity Trading

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  1. Spot vs. Futures Markets in Commodity Trading Key Differences and Applications Created by Navia Markets For more Visit: https://navia.co.in/blog/types-of-commodity-markets/

  2. Spot Commodity Market • Definition: Market for immediate settlement of commodities. • Characteristics: Immediate delivery, price determined by current supply and demand. • Use Cases: Immediate purchase needs, perishable goods transactions. For more Visit: https://navia.co.in/blog/types-of-commodity-markets/

  3. Futures Commodity Market • Definition: Market for standardized contracts agreeing to buy/sell commodities at a future date. • Characteristics: Standardized contracts, regulated exchanges, margin requirements. • Use Cases: Hedging against future price changes, speculative trading. navia.co.in For more Visit: https://navia.co.in/blog/types-of-commodity-markets/

  4. Spot vs. Futures Market Comparison • Delivery: Immediate vs. future date. • Pricing: Current market price vs. agreed-upon future price. • Risk: Exposure to immediate price volatility vs. managed through contracts. navia.co.in For more Visit: https://navia.co.in/blog/types-of-commodity-markets/

  5. Thank You navia.co.in

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer navia.co.in For more Visit: https://navia.co.in/blog/types-of-commodity-markets/

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