The forward price of a commodity is based on the current spot price plus the cost of transport during the intermediate delivery before delivery. The cost of transportation relates to the price of storing the goods, which includes interest and insurance, as well as other incidental costs. An asset may have different prices in cash and in the future. For example, gold may have a spot price of $1,000, while its futures price may be $1,300. Similarly, the price of securities can be traded in different sectors on the stock market and in the futures market. For example, Apple Inc. (AAPL) can trade at $200 on the stock exchange, but the strike price on its options may be $150 in the futures market, which pessimistic traders` perceptions of its future. The spot price is the current market price where a certain fortune – for example. B a real estate value, a commodity or a currency – can be purchased or sold for immediate delivery. While spot prices are both fixed and localized, the spot price of most securities or commodities in a global economy is fairly uniform when exchange rates are taken into account. Unlike the spot price, a forward price is an agreed price for the future delivery of the asset. For example, a Chinese production company has a large delivery contract in the United States within a year.
The Chinese company executes a currency for $20 million for the Chinese yuan at a future price of 0.80 $US per yuan. The Chinese company is obliged to deliver US$20 million at the price and on the date six months after this, regardless of the different spot prices. The basis is not necessarily correct. There are usually gaps between the spot and the relative price until the next contract expires. The quality of the product can also vary, making the base an imperfect indicator. In Denmark, there is something fishy: the availability of data is improving, it is more common to talk about the differences between spot and contract prices, as well as the relative shares that everyone earns in the market. If you look at this comment or perhaps the data you receive, make sure you are making a comparison of apples to apples. This is important because contractual data with or without fuel is always a door-to-door rate; What the sender pays. On the other hand, spot data is generally reported as what the broker pays the carrier, with or without fuel, and does not contain the add-ons that the broker charges to the sender to cover his costs.