http://commoditytradingquestions.org/commodity-trading/can-anyone-tell-me-how-companies-trade-energy-is-it-like-stock-or-do-they-actually-move-the-commodity-when Answers to all your questions about commodity trading. Thu, 09 Sep 2010 08:02:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://commoditytradingquestions.org/commodity-trading/can-anyone-tell-me-how-companies-trade-energy-is-it-like-stock-or-do-they-actually-move-the-commodity-when/comment-page-1#comment-1928 Highlandbound Mon, 01 Feb 2010 13:01:58 +0000 http://commoditytradingquestions.org/commodity-trading/can-anyone-tell-me-how-companies-trade-energy-is-it-like-stock-or-do-they-actually-move-the-commodity-when#comment-1928 When a company is trading energy, or any other commodity they typically are trading contracts to purchase the commodity at a specific date and price. For example a company may buy 10 million barrels of oil without every actually taking delivery and then sell that oil on to others at a later date. Energy is sold in the same way. Companies buy electricity for example, which obviously can't be stored in large quantities, so they are really buying the right to receive it at some future point. When a company is trading energy, or any other commodity they typically are trading contracts to purchase the commodity at a specific date and price. For example a company may buy 10 million barrels of oil without every actually taking delivery and then sell that oil on to others at a later date. Energy is sold in the same way. Companies buy electricity for example, which obviously can’t be stored in large quantities, so they are really buying the right to receive it at some future point.

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