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Futures contracts remain valid even if the original parties to the contract sell the rights.

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Tyrel Wiegand

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3y ago

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Related Questions

Why commodity futures contracts re transferable?

They can be bought and sold but the obligation in the contract remains valid.


Why are commodity futures contracts transferable?

Commodity future contracts are transferable (can be bought and sold), to realize a profit or loss, but the obligation in the contract remains valid.


Why commodity stock's earning is extremely price sensitive?

What do you mean by commodity stock? Do you mean a manufacturing company's stock or do you mean an ETF that invests in commodities? Commodities aren't stocks, they are bought and sold on commodity exchanges, usually in futures contracts.


Which of the following best explains why commodity futures contracts are transferable?

They can be bought and sold but the obligation in the contract remains a valid


When a refiner such as Valero buys crude is the price they pay the current commodity price?

Not necessarily. They may have bought futures.


What is specific about futures contracts?

Four things: the commodity being sold the amount of that commodity you'll get the price per unit and the settlement date If you buy a CME copper futures contract... the commodity is Grade 1 electrolytic copper cathodes, full plate or cut, conforming to ASTM specifications for this metal, and physically delivered the amount is 25,000 pounds the price is in cents per pound and the settlement date depends on the contract you bought.


Where is it possible to learn about the commodity market?

Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.


What are commodity trading charts used for?

Commodity trading charts are used for raw or primary products are being exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.


What is Future Market in Forex Exchange Market?

The futures contracts that are bought & sold in future market are completely based on a standard size. Moreover, the futures contracts include the details having number of units which are being traded, settlement & delivery dates and minimal increment in price. Both the future & forward contracts usually resolved for the exchange of cash in Forex Trading Signals.


What are the features of Commodity Future Option Trading?

All futures are bought and sold on margin. Profit and loses are magnified. The risk of leverage puts you at a risk of losing substantially more than you put in.


Future Contracts Calculator?

Future Contracts Calculator Use this calculator to determine the number of futures contracts you may wish to purchase based on your account equity and trading plan. All investment plans should be reviewed by a financial professional before you execute them. Purchasing futures contracts is a risky investment and should only be done by experienced investors with professional advice. This calculator is only designed to help illustrate the percentage of your equity investment that is at risk with a specific future contract purchase.


What is the term for something bought or sold?

Something bought or sold is a commodity. A commodity can be a service or goods (a product). There may be other terms in business that I'm not aware of, but commodity is the first that comes to my mind.