Commodity Traders and Future Value
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The traders in commodity markets for different commodities are of two types.
The traders in commodity markets for different commodities are of two types:
- One who like to leverage on the future value of such commodities by taking some risk on shoulders with a view of gaining out of future value, which may fall or rise according to the forecast.
- The other traders of such commodities are such companies whose main business risk is associated with the fluctuation in future market value of the product/ commodity, but they simply try to bring down such a risk by hedging in such commodities, till their risk gets exhausted in main business line of operations.
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