Tag: Commodity Exchange

Commodity Exchanges are organized markets and designated market places where buyers and sellers trade in commodities such as agricultural and industrial commodities like grains, metals, natural gas, crude oil, and electricity. The exchanges provide price discovery and keep legal records of the trades. They provide various services involve in the trade of commodity such as margin, hedging, and storage of the commodities. These exchanges allow the efficient and competitive pricing of commodities and they facilitate the smooth functioning of the markets. Commodity Exchange also helps in managing commodity pricing risk by offering futures and options contracts.