Trading Basis Market or Trading basis your VIEW, Which is best suited for
commodity buyers ?
Seller offers to buyer : X qty of metal for Spot delivery at Y Price( as per
Global Market Price.)
Day 1
Buyer : Dear Seller Your price is high, I can’t buy currently
Seller : But its Market price and this is best we can offer.
Buyer: Ok, But I will wait for Prices to fall, then only I will enter.
Day 2 : Prices Fell by 50 USD. Supplier dropper & offered accordingly.
Buyer: Dear Seller Your price is high, I can’t buy currently.
Seller: But its Market price ,which is 50 USD lower than previous day and this
is best we can offer.
Buyer: I will wait for Prices to fall further, then only I will enter.
Day 3:
Prices Fell by 50 USD further.
Buyer 1 : Your price is high, I can’t buy.
Seller: But this is Market price which is 50 USD lower than yesterday.
Buyer 1: I will wait for Prices to fall further, then only I will enter in
buying.
Buyer 2: It's resaonable margin basis today's market. Yes lets do the business.
There are broadly two thoughts of Buying, one who trades basis Current Market
and another Basis his View…
Who do you think is Smarter???? Buyer 1 or 2
#metal #market #commoditytrading #aluminiumindustry #hedging
Coming Soon ...New Trader in town...#NTT
Originally posted by Pratik Jha on LinkedIn
link: linkedin.com/in/pratikkjha
commodity buyers ?
Seller offers to buyer : X qty of metal for Spot delivery at Y Price( as per
Global Market Price.)
Day 1
Buyer : Dear Seller Your price is high, I can’t buy currently
Seller : But its Market price and this is best we can offer.
Buyer: Ok, But I will wait for Prices to fall, then only I will enter.
Day 2 : Prices Fell by 50 USD. Supplier dropper & offered accordingly.
Buyer: Dear Seller Your price is high, I can’t buy currently.
Seller: But its Market price ,which is 50 USD lower than previous day and this
is best we can offer.
Buyer: I will wait for Prices to fall further, then only I will enter.
Day 3:
Prices Fell by 50 USD further.
Buyer 1 : Your price is high, I can’t buy.
Seller: But this is Market price which is 50 USD lower than yesterday.
Buyer 1: I will wait for Prices to fall further, then only I will enter in
buying.
Buyer 2: It's resaonable margin basis today's market. Yes lets do the business.
There are broadly two thoughts of Buying, one who trades basis Current Market
and another Basis his View…
Who do you think is Smarter???? Buyer 1 or 2
#metal #market #commoditytrading #aluminiumindustry #hedging
Coming Soon ...New Trader in town...#NTT
Originally posted by Pratik Jha on LinkedIn
link: linkedin.com/in/pratikkjha