Question

Why is there no futures market in cement?

Why is there no futures market in cement?

Homework Answers

Answer #1

Futures market are a trading place where buyers and sellers are involved in buying and selling of a commodity for delivery at a specified date in the future . Investors carry out activities on the basis of speculation about the future prices or to hedge a particular position. The prices of cement is fairly stable and predictable , hence there is no scope for hedgers and speculators to carry out trading activities on this nature of commodity. The demand is always at par with the supply.

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