When an investor enters (also referred to as "purchases") commodity contracts, the individual takes physical delivery of the goods.

Question

Quizplus · Accepted Answer

When investors enter commodity contracts, they typically do not take physical delivery of the goods. Instead, they often buy or sell contracts with the intention of closing out the position before the delivery date. Some investors may choose to take physical delivery, but it is not the norm.

When an Investor Enters (Also Referred to as "Purchases") Commodity