commodity futures
Goods delivery contracts
Commodity futures are contracts to buy or sell a specific quantity of a raw material—grain, oil, metals, livestock—at a predetermined price on a future date.
Traders use them to hedge against price fluctuations or to speculate on price movements.
Commodity futures surged on drought forecasts.
The contracts trade on specialized exchanges and rarely result in actual delivery; most positions are closed before expiration.
- spot priceCurrent trading value
- crude oilUnrefined fossil fuel
- derivativesThings derived from another
- hedgingNoncommittal maneuvering
- optionsAvailable courses of action
speculation · short selling · long position · natural gas · clearinghouse · swaps · limit order · delivery date · settlement · arbitrage · price volatility · silver · copper · coffee · cotton · pork bellies · margin calls · gold
commodity futuressavings accounts
Interest-bearing bank deposits
certificates of deposit · money market funds · cash reserves
commodity, commodities, commodious, future, futures, futurism, futurist, futuristic, futurity