Respuesta :
Oil prices are denominated in the terms of dollars in the international commodities markets.
What is a commodity market?
In contrast to markets for manufactured goods like cocoa, fruit, and sugar, commodity markets trade in the primary economic sector. Mining is done for hard commodities like gold and oil. The first form of commodity investing is through futures contracts. Physical trading and derivatives trading on commodity markets using spot prices, forwards, futures, and options on futures are both possible. For centuries, farmers have used a straightforward form of derivative trading on the commodity market to manage price risk. Financial instruments whose value is derived from a commodity known as an underlier are referred to as financial derivatives. A growing number of derivatives are traded through clearing houses, some of which feature central counterparty clearing. These clearing and settlement services are offered both on futures exchanges and off-exchange in the OTC market.
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