Question

Difference between commodities derivatives and financial derivatives

Answer 1

Answer:

Basis is the difference between the spot price of an asset and the futures price of the same asset underlying. The spot price is the ready price prevailing in the physical commodity market while the futures price is the price of any specific contract that is prevailing in the exchanges where it is traded.

Answer 2

Answer:

commodities means by the people and financial means money and derivations means dirived from another language.