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Explain in simple terms what market risk means ... - SS1 Commerce Constraints to commodity trading Question

Explain in simple terms what market risk means in commodity trading.

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Market risk in commodity trading refers to the overall risk associated with the broader market conditions. It includes factors like economic downturns, regulatory changes, and unexpected events that can impact commodity prices and market dynamics. Market risk affects all participants in commodity trading and can result in losses or reduced profitability.

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