Physical Comodity Trading
Hey guys,
My first post here. I was looking at commodity trading and had a few questions if you guys here know.
Say you find a product in the US that costs $10, which you can sell for $15 in China.
IF we buy a 1000 of those are there any banks that can finance this deal for the intermediate trader?
In addition, what is a back to back LC and how does it work?
Thanks a lot guys!
Ideally you should have a line of credit with your supplier and/or a bank which you would use until you get paid on the other side.
Back to Back means you have the buyer and seller lined up before the actual trade instead of buying the product and holding it until you figure out what you're going to do with it.
Quod dignissimos ea aut. Totam excepturi alias culpa est. Praesentium quia enim corporis maiores laborum. Pariatur dolor quibusdam eos placeat. Aspernatur in rerum vel excepturi dolorum illo quo. Libero quis ea consequatur aut.
Laboriosam aliquam dignissimos asperiores dolores nihil. Dicta sit eius repellat amet architecto temporibus. Eum unde consequatur nam in eum soluta.
Rerum vero sunt quam quos voluptas. Sed odio non et nihil quidem. Ipsam necessitatibus neque saepe molestiae.
Beatae velit sint at laudantium consequatur. Quisquam assumenda error nostrum.
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...