Using Commodity Futures

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Govt. Certified Commodity Dealer

A commodity future is an exchange-traded contract – an agreement to buy or sell a specific instrument at a pre-determined price for delivery or cash settlement in the future. Futures contracts detail the quality and quantity of the underlying product and may call for physical delivery, or may be settled in cash. Futures exist for many commodities; among them are metals, agricultural products, financial indices, interest rates, foreign exchange and energy products. These contracts are highly liquid, price transparent and traded on a variety of exchanges worldwide.

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Pricing Commodity Futures
Hedging and Speculation

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