Commodity Option contract

The contract allows the business to have the right, but not the obligation, to buy or sell a certain quantity of commodities at a specific price at a designated future time. This include: 

• Standardised option contracts on commodity prices (Option on futures) listed on foreign commodity exchanges. 
• Non-standard option contracts on commodity prices (OTC option).
• Non-standard option contracts on commodity prices combined with a price collar.

Commodities types: Agricultural products, Fuels, Energy, Metals as per current legal regulations. 

(Contract information: Commodity Derivatives Department - Capital Market Division. Email: commodities.kdv@vietcombank.com.vn- Hotline: 02439349527)

• By locking in prices for buying or selling commodities with a specified quantity and timeframe, the businesses can prevent the risk of price fluctuations and stabilise their business effectively.
• On the expiration date, the business has the right to choose whether to execute or not execute the contract at the pre-agreed price. This allows fixing the maximum cost through option fees.
• It helps business access the international commodity derivatives market. 
• There are preferential fee policies for these services.