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A price-fix hedge enables an importer or an exporter to lock into a future price for a commodity planned for import or export without "actually having a crystallised physical exposure to the commodity.

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13y ago

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What does commodity market mean?

A commodity market is a marketplace where raw or primary products are traded. These commodities are typically categorized into two types: hard commodities, which are natural resources like oil and gold, and soft commodities, which are agricultural products like wheat and coffee. The trading can occur on physical exchanges or through futures contracts, allowing buyers and sellers to hedge against price fluctuations. Commodity markets play a crucial role in the global economy by facilitating price discovery and providing liquidity.


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.


What does 'price floor' mean in economics?

In economics, price floor is the lowest allowed price a commodity can be sold at. They are used by the government to keep some prices from being too low.


What does hedge clipper mean in German?

hedge clippers = Heckenschere


What is spot price mean?

the current price at which a particular commodity can be bought or sold at a speified time and place. if you want to find out more go to investor.infospaceinc.com/glossary.cfm


What does scarcity of resources mean in economics?

There is not enough of something (supply) to meet the demand. This prdonarily means that the price of that commodity will rise.


What is the mean of hedge?

The meaning of a "hedge" would be best described as a "hedge of protection" against the volatile market. Also used in the term Hedge Fund


What does the term COGS mean on the trading market of gold?

In the trading market of gold and other products "COGS" is the cost of goods sold, one of the many factors along with labor and transport used to figure the profitability of the commodity traded.


What is equity trading and commodities trading?

Equity means shareholder ownership of the company. Equity is simply another partner of the company who can look over all the sectors of the company. He is a decision maker. Commodities mean products that are bought and sold. Commodities trading products are the main things. in Equity trading, you have the percentage of profit.


What does the day trading term arbitrage trading mean?

Arbitrage trading is trading that takes advantage of a difference in price between two or more different markets, to make a profit equal to the difference in the market prices. Arbitrage trading is useful in banks and brokerage firms.


What word mean both a row of bushes and to prevent someones freedom?

Hedge can have both of these meanings.Though the usual idiom is 'don't hedge me in', 'don't hedge me' is also possible.


What does a 'bull spread' mean in options trading?

A bull spread in options trading is just a vertical strategy. This is used when a person believes the spread will rise and the price in turn will do the same.