Sunday, September 2, 2012

The Process of Buying & Selling Commodities

Part of the process of buying and selling commodities is the order. There are different types of orders are available to use. The order is the contract between a commodities buyer and a commodities seller that gives the buyer of the option the right (not the obligation) to buy a commodity or to sell a commodity for the strike price, this is an approved and agreed upon price by a specific date. The offer expires at the end and the contract would need to be rewritten if the buyer wants to have the option again. Some of the orders that are available when buying and selling commodities:

* Market Order-this is among the most common type of order. With this type of order, the customer chooses a specific commodity or commodities that he or she wants to buy or to sell. The customer chooses the number of contracts that will deliver monthly. The contracts will not have a price on theme. Where the price will go, it will say either at the market or it will say

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