Physical commodities brokerage
I still have a hard time understanding the difference between paper and physical and I wanted to know what exactly do physical commodities brokers do? Are forwards considered physical derivatives?
Thank you
Trending Content
Career Resources
no difference just paper doesn't have the physical delivery
on the brokerage side with physical trades the counterparties have to have doc's in place to trade with each other so smaller companies or credit strapped shops will have hard time finding a good bid/offer with a tradeable counterparty. this can make it difficult for a broker trying to find both sides of the trade.
This doesn't happen with financial brokerage since all deals are exchange cleared
Good response, may help if you give us an idea of what you looking/confused about. We can then explain how settlement works.
I broker phy and one is an actual product and other is a financial contract... pretty simple
Nesciunt quam eius molestiae. Tenetur quo a tempora commodi.
Esse cumque architecto quis ex. Neque ex numquam non rerum consequatur sequi. Molestias est ab et cum suscipit nostrum provident. Error quidem a et sit. Porro ea molestiae nostrum labore incidunt ut quibusdam officia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...