What is comex? Where does the spot price come from? Are these different from gold and silver futures? Does the comex have to hold the physical metal or do the futures have to hold it? Can someone give an explanation of the different markets and terms? Thanks!|||The spot price is the current market price or more succinctly the price of the last trade. Futures are contracts to trade at an agreed upon price in the future and therefore have a value dependent on the probable future price versus that of the contract and are traded as such with the associated speculation of the future price. The difference between the current spot price and the contracted price of the futures contract, the time to maturity and the volatility of the price is used to estimate the probable price at maturity and hence estimate the value of the futures contract. The spot price is for the commodity itself, futures are a derivative product and is a related but separate market.
Comex is the Commodity Exchange, a division of the New York Mercantile Exchange, they don't hold anything, they just bring buyers and sellers together.|||I think Kitco.com will have your answers.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment