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| What are the Exchange Traded Markets? |
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The Exchange-Traded Markets are essentially only derivative markets and are similar to equity derivatives in their working. i.e. everything is standardized and a person can purchase a contract by paying only a percentage of the contract value. A person can also go short on these exchanges.
Also, even though there is a provision for delivery most of the contracts are squared-off before expiry and are settled in cash.
As a result, one can see an active participation by people who are not associated with the commodity. |
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