ag futures

Card Set Information

Author:
codyrayh
ID:
6958
Filename:
ag futures
Updated:
2010-02-15 09:58:18
Tags:
agri
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Description:
futures markets and commodities
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  1. name and briefly describe the functions of futures markets
    futures markets provide a marketplace for persons interested in buying or selling commodities based on todays information and the perception of where prices will be in the future
  2. what are similarities between a futures and a forward contract
    both are agreements between two parties to make or take delivery of a particular good or service at a future date for a given price
  3. what are the differences between a futures contract and a forward contract
    • futures contracts trade openly and publicly on organized exchanges while forward contracts usually trade one on one or privatly between buyer and seller
    • Futures contracts trade in a more liquid environment and teh market is often easier to enter and exit, Forward contracts are typically not fungible

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