Commodity Exchanges
Commodity exchanges are organized marketplaces where contracts are traded for the purchase or sale of physical commodities such as agricultural products, energy, and metals. In the aviation industry, commodity exchanges play a significant role in the trading of jet fuel, which is a major expense for airlines. Airlines can use commodity exchanges to hedge against price fluctuations in jet fuel by locking in a price for future delivery. This helps airlines to manage their fuel costs and reduce their exposure to market volatility.
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