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Options vs Futures: Managing Risk in Commodity Trading

Options and futures are some of the most popular derivatives offering exposure to commodities, but the two have key differences that shape t...
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What are buffer stocks?
Definitions

What are buffer stocks?

Saddique Ansari • January 28, 2020 • 1 min read

Author bio

Buffer stock

A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level).

buffer stock diagram

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