Wednesday, July 18, 2012

What Are Commodities Futures?

Commodities futures, or commodity futures contracts, are an agreement to buy or sell a commodity at a specific date in the future at a specific price. Buyer makes money if he purchased a certain commodity and its price increases at the time of settlement and seller makes money if he sold the commodity and its price decreases at the time of settlement. In this sense, one can make money by entering to the market by both buying and selling the commodities.

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