Question

commodities of physical transferability and notional transferability​

Answer 1

Answer:Notional value is a term often used to value the underlying asset in a derivatives trade. It can be the total value of a position, how much value a position controls, or an agreed-upon amount in a contract. This term is used when describing derivative contracts in the options, futures, and currency markets.

Explanation:

Answer 2

The commodities that can be moved from one place to another are commodities of physical transfer ability

Notional transfer ability refers to the value of goods which are related to the value of goods in derivative trading at a future date

Explanation:

Physical transfer ability

• Transfer ability refers to the goods which are transferred from one place to another physically.
• It involves certain costs in regards to transport, costs of taxes and other costs for moving the goods from one place to another
• The goods could be in regards to economic goods, manufactured goods, consumer goods and more

Notional transfer ability

• This refers to goods being transferred in regards to the value of the derivative method of trading
• The value or amount of goods are entered through an agreement of trading  to be transferred at a future date
• These are standard contracts which are used in the process of trading the goods

To know more about Physical transfer ability of goods

What is the difference between transfer of interest and transfer ability of share ​

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