The term "What is Pay/Collect?" is used in the futures and commodities trading industry to describe the process of making or taking delivery of a commodity. In order to make or take delivery of a commodity, a trader must first be registered with the commodity exchanges where the commodity is traded. Then, the trader must open a futures account with a broker that is a member of that exchange.
When a trader wants to make or take delivery of a commodity, they will first need to find a counterparty who is willing to trade with them. Once a counterparty is found, the trader will then need to negotiate a price for the commodity. Once a price is agreed upon, the trader will then need to put up margin in order to secure the trade.
Once the trade is secured, the trader will then need to make arrangements for the commodity to be delivered. This can be done through a number of different methods, such as hiring a trucking company or using a storage facility. Once the commodity is delivered, the trader will then need to pay for it.
The term "What is Pay/Collect?" is used to describe the process of making or taking delivery of a commodity. This process can be used by traders in the futures and commodities markets in order to make a profit.
What type of transaction is collect pay?
There are two types of transactions in collect pay: spot and futures. In a spot transaction, the buyer pays the seller the full value of the commodity upfront, and in a futures transaction, the buyer and seller agree to pay each other the value of the commodity at a future date. What is collection payment? A collection payment is a type of payment made by a commodities futures exchange in order to settle a trade. This payment is made to the party who is owed money by the exchange, and is typically made in the form of a check or wire transfer.
Do futures settle daily?
Yes, futures contracts settle daily. This means that at the end of each trading day, the contract holder is either required to take delivery of the underlying asset, or to make a cash payment in lieu of delivery. The daily settlement price is determined by the trading activity during the day.
What is marking to market for futures?
When trading futures contracts, "marking to market" refers to the process of resetting the value of the contract to reflect the current market price. This is done at the end of each trading day, and the results are used to determine the margin requirements for each account. Marking to market also allows traders to see how their positions are performing on a daily basis. What is collection process? The collection process is the process of gathering together a group of financial instruments, usually in the form of a portfolio, for the purpose of trading or investment. The collection process can be used for a variety of purposes, including the creation of a new investment vehicle, the diversification of an existing portfolio, or the management of risk.