Abstract:Although spot transactions are non-negligible parts of commodities transactions, nevertheless for risk management and hedging, forward and futures trading have become increasingly important. Futures c...Although spot transactions are non-negligible parts of commodities transactions, nevertheless for risk management and hedging, forward and futures trading have become increasingly important. Futures contracts are very similar to forward contracts by definition; the difference is that futures contracts are standardized contracts traded on established ('regulated') exchanges, whereas forward contracts are traded over-the-counter (OTC). This chapter covers forward and futures contracts. It presents examples of contracts traded on existing commodities exchanges when necessary. The chapter ends with the theoretical determination of forward/futures prices.Read More
Publication Year: 2022
Publication Date: 2022-01-18
Language: en
Type: book-chapter
Indexed In: ['crossref']
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