Benefits of commodity exchange. - SS1 Commerce Past Questions and Answers - page 1
What is one of the benefits of commodity exchanges?
Increased price volatility
Reduced liquidity
Risk management
What do commodity exchanges help establish?
Market volatility
Fair and transparent prices
Price manipulation
What is one advantage of liquidity on commodity exchanges?
Higher bid-ask spreads
Reduced trading volume
Competitive pricing
What do standardized contracts on commodity exchanges ensure?
Uniformity and ease of trading
Unique contract terms for each participant
Trading complexity
What is one benefit of commodity exchanges in terms of market access?
Access to diverse markets
Regional trading only
Access to diverse markets
Explain in simple terms what price discovery means in the context of commodity exchanges.
What role do standardized contracts play in commodity exchanges? Provide one key benefit.