4 Replies to “In commodity stock market is there any real dealing with commodities or only on papers?”

  1. There is no such thing as any investment based on only 2 barrels. In the commodity market, it is usually based on about $ 100,000 worth of oil or other commodity which you buy with a small ‘margin’ of about 10%, so if it goes down 10% you lose your entire investment and if it goes up 10%, you double your money.

    There are some ETFs in the stock market based on oil. You don’t buy by the barrel though. You buy by the number of shares you want to amount to the amount of money you want to invest.
    You can buy a minimum of one share and a maximum of millions of shares.

  2. Clark kent is wrong you can but it is rarely done it is called an exchange for physical I used to work for the nymex where they trade the crude gold silver and all other commodities. I have seen people take delivery on gold and silver but not on crude but it can be done. But it will not be done but you also you can buy just 2 lots you can but one lot and turn arounfd and sell it if you want.

  3. No. Only differential price of purchase and sale minus brokerage and taxes, will be settled on expiry date.

  4. 95% of the volume traded on NYMEX will not go to delivery. The rest will. Also, the smallest lot you can but in crude oil is 10,000 bbls. The usual size of an order is 25 lots (25,000) bbls.

    So yes it is possible to actually receive crude oil bought on the open market.

    Also it is not a commodity stock market, just commodity market. Stocks are equities.

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