Frequently Asked Questions, FAQ


1. What are Commodities?

Commodities are economical goods and services that have substantial value. They include raw materials such as Agricultural commodities (e.g. Cocoa, Sorghum etc.), Currency, Solid Minerals and Oil & Gas.

2. What is a Commodities Exchange?

A commodities exchange is an open and organised market place where ownership titles to specific quantities of identified commodities are traded by registered members for their clients.

3. What is the difference between a Stock Exchange and Commodities Exchange?

The stock exchange trades on equities or shares while the commodities exchange trades on commodities and their associated instruments.

4. What services do you provide?

LCFE provides a trading platform for transparent transfer of ownership titles of commodities. We provide an environment for farmers, warehouse owners, commodity middle men, commodity merchants, traders of currency, Oil & gas and solid minerals to be able to exchange their goods and services. LCFE creates a platform that enhances liquidity in the commodity market, enhances the revenue base of the country and enables commodity traders to manage risk.

5. What is Futures Trading?

Futures are specified contracts traded in an exchange. Their values depend on an underline assets or commodity like currency, oil & gas etc. (e.g A warehouse receipt’s value is the value of the goods in the warehouse itself, this document can be considered as a futures contract to trade the contents in the warehouse.

6. Can I buy shares on your platform?

NO.

7. Can I buy Investment Contracts?

YES.

8. Can I sell my commodities on your platform?

Yes but only through a registered broker.

9. How can I find a Broker?

LCFE has a list of brokers that can be made available upon request?

10. Who can trade on your platform?

Individuals and investors can trade on our platform through registered brokers.

11. What benefits does LCFE give its trading members?

LCFE offers trading members an opportunity to sell or buy their commodities. We provide an opportunity to have quick liquidity and manage risk.

12. Who are your partners?

Securities Exchange Commission (SEC Nigeria), the Central Securities Clearing System (CSCS), Association of Stockbroking Houses of Nigeria (ASHON), Association of Bureaux De Change Operators of Nigeria (ABCON), Corporate Farmers International, Cotecna Inspection S.A., Neulogic Solutions Limited.