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Essay heading: Role Of Warehouse In Future Market
 
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Issue: Business
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Date added: February 22, 2005
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No of pages / words: 5 / 1163
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Warehouses play an important role in commodities futures, as most of trades are settled with delivery. That is, if the seller chooses to handover the commodity instead of the difference in cash, the buyer must take physical delivery of the underlying asset. Hence, warehouses play a significant and decisive role in the proper and efficient functioning of commodity futures trading...
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That is, if the seller chooses to handover the commodity instead of the difference in cash, the buyer must take physical delivery of the underlying asset. Hence, warehouses play a significant and decisive role in the proper and efficient functioning of commodity futures trading. Warehousing system and warehouse receipts act as the chain, connecting farmers with the future market and credit financing...
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