Question : Which market provides a platform for trading futures contracts?
Option 1: Stock market
Option 2: Commodity market
Option 3: Forex market
Option 4: Bond market
Correct Answer:
Commodity market
Solution : The correct answer is (b) Commodity market.
The commodity market provides a platform for trading futures contracts. Futures contracts are agreements to buy or sell a specific asset (known as the underlying asset) at a predetermined price and date in the future.In the commodity market, participants can trade futures contracts that represent the future delivery of these commodities. Traders can take positions in futures contracts by buying (going long) or selling (going short) contracts, speculating on the price movement of the underlying asset.
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