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Are there physical deliveries in commodity futures exchanges?

April 26, 2017commodity deliveries exchanges Futures physical

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Are there physical deliveries in commodity futures exchanges?

1 Answer

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YES, the exchanges, in order to maintain the futures prices in line with the spot market, have made available provisions of settlement of contracts by physical delivery. They also make sure that the price of futures and spot prices coincide during the settlement so that the arbitrage opportunities do not exist.