Spot price trading is essentially a pricing method of spot trading, and both parties do not need to participate in futures trading. In some commodity transactions, such as soybeans, copper, oil, etc., point price transactions are widely used.
Spot price is a pricing method of futures delivery, that is, for a certain type of forward delivery goods, the price of the goods is not directly determined, but only the discount is determined. Then, in the agreed "pricing period", the futures price of a certain day in the major international futures exchanges is taken as the base price of pricing, and the agreed premium is taken as the final settlement price.
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According to the division of power to determine the actual transaction price at a specific time, spot price transactions can be divided into buyer's outcry transactions and seller's outcry transactions. If the power to decide the trading time belongs to the buyer, it is called buyer's outcry trading, and if the power belongs to the seller, it is called seller's outcry trading. ?
In fact, point price is not a term in LME transaction, but a commonly used term or method in physical transaction. As more and more manufacturers, consumers and traders use LME, the price uncertainty is also increasing.
In order to lock in a certain price level, LME price base is used for physical transaction in time, thus generating point price. Because it is LME that provides the price basis for the physical point price. If there is no LME market, there is no point price in physical trade, but the buyer and seller directly determine the price when signing the contract.
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