Commodities Futures Trading

Commodity futures trading involves buying and selling contracts for future delivery of physical goods, like oil, gold, or agricultural products. Investors speculate on the price movements of these commodities, agreeing to buy (or sell) at a set price on a specific future date. This can help producers hedge against price fluctuations, while traders aim to profit from market changes. The contracts are standardized and traded on exchanges, allowing for liquidity and transparency. Overall, it serves as a way to manage risk and invest in tangible assets within the financial markets.