0
In regards to commodities what is the definition of an inverse market?
Wiki User
∙ 11y ago
An inverted market is when the successive future months' prices are lower than the cash or spot price. It is the opposite of a carry market where future months are higher relative to the spot price, quite often at or near carry, which pays for the storage and financing of the commodity - hence carry.
In an inverted market, the user of the commodity is prepared to pay a much higher relative price to the future to have access to the physical as it often happens in the oil markets.
Owing to the long haulage of oil and special storage requirements, the physical buyer, e.g. a refinery, is prepared to pay a premium or a convenience yield to hold inventory even though he has to finance it.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is market scheming?
Market Scheming is simply the creation of plan to profit from a market. Stocks, Bond, Commodities, Forex markets can all be schemed.Scheme by definition means "A systematic plan of action".See marketscheming.blogspot.com
What are the top 5 commodities in Georgia?
gold, silver, copper, oil and bronze are the top 5 commodities. they are widely traded in commodities market.
Which is best equity market or commodity market?
If you're an investor, the equities market is best. It's way too easy to lose a lot of money investing in the commodities market. If you're a company that uses a commodity, then the commodities market is best.
Why is gold traded on the commodities market?
Because it is a commodity.
Which accurately explains the difference between the stock market and the commodity market?
ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market. APEX
What is comodity market?
A commodity market is a market that trades in primary economic sector rather than manufactured products. Soft commodities are agricultural products such as wheat, coffee, cocoa and sugar. Hard commodities are mined, such as gold and oil.
Difference between forward market and spot market?
Spot market is also known as "cash market" where the commodities are sell on the current price or the spot rate and deliver immediately, where as in case of forward market, market dealing with commodities for future delivery at prices agreed upon today (date of making the contract).
Where can one read information on getting started investing in the commodities market?
One can read information on investing in the commodities market from many different online sources. Some of the more reliable sources include Market Watch and Daily Finance.
Are commodities market open on Good Friday?
yes ,I think so
What is agroprocessing?
the turning of primary agricultural products into other commodities for market.
When did oil start selling on the commodities market?
10000 Billion BC
What time us commodities market open in Indian time?
6.30pm
