What is the best time to trade commodities?

The two most common times when investors flock to commodities is during times when commodities become very cheap, and commodities are considered a value play. The other time is when commodities are hitting multi-year highs and investors want to catch the trend.

What is difference between future and forward contract?

A forward contract is a private and customizable agreement that settles at the end of the agreement and is traded over-the-counter. A futures contract has standardized terms and is traded on an exchange, where prices are settled on a daily basis until the end of the contract.

What is the difference between spots and futures?

The spot price of a commodity is the current cash cost of it for immediate purchase and delivery. The futures price locks in the cost of the commodity that will be delivered at some point other than the present—usually, some months hence.

What time does WTI crude stop trading?

Trading Times Electronic trading of crude oil futures is conducted from 6:00 p.m. U.S. until 5:00 p.m. U.S. ET via the CME Globex® trading platform, Sunday through Friday.

How are futures contracts settled?

On the expiry of the futures contracts, NSE Clearing marks all positions of a CM to the final settlement price and the resulting profit / loss is settled in cash. The final settlement of the futures contracts is similar to the daily settlement process except for the method of computation of final settlement price.

What advantages do futures contracts have over forward contracts?

There are many advantages and disadvantages of future contracts. The most common advantages include easy pricing, high liquidity, and risk hedging. The major disadvantages include no control over future events, price fluctuations, and the potential reduction in asset prices as the expiration date approaches.

How does contango make money?

Traders with access to both physical oil and storage can make substantial profits in a contango market. A contango is a situation where the futures price of a commodity is higher than the spot price. Another way for traders to profit off a contango market is to place a spread trade.

Is futures trading better than spot?

The difference between spot and futures: an overview They don’t expire. Futures markets (also known as forwards markets) have higher spreads but no overnight fees. They expire on a set date in the future. This makes spot markets more attractive to day traders, and futures markets more attractive to longer-term traders.

Why do employees have the same pay date every month?

Employees know they will receive their pay per once a month, which helps everybody involved avoid confusion When everyone has the same monthly pay date across the business, there’s no confusion about when anyone is getting paid.

What day of the week do people usually get paid?

If that’s the case, go for Thursday if you want to be near someone’s payday. There are people paid on Wednesday, Thursday, Friday. Then there’s bi-weekly, 1st and 15th and variations in between. But if you know your best list response is on Mon, Tues, Thurs, I’d use one of those days.

What is payday and how does it affect consumers?

Payday is a highly anticipated day for any worker no matter when it takes place. How frequently workers get paid and how many paydays there are per year could affect their decisions as consumers, such as if and when they decide to purchase particular goods and services.

What is the most common pay period in the US?

Biweekly is the most common length of pay period, with 36.5 percent of U.S. private businesses paying their employees every 2 weeks. Weekly pay periods are almost as common, with 32.4 percent of private businesses paying employees each week. Semimonthly and monthly pay frequencies are less common.