futures trading
Commodity contract markets
Futures trading is the buying and selling of contracts that obligate parties to exchange an asset at a predetermined price on a future date.
Originally developed for agricultural commodities—allowing farmers to lock in prices before harvest—futures now cover oil, currencies, stock indexes, and more.
Traders use futures to hedge against price swings or to speculate: She made a fortune in futures trading when oil prices spiked.
- hedgersRisk-mitigating investors or pruners
- currenciesOfficial mediums of exchange
- arbitrageursTraders exploiting price differentials
- speculatorsThose betting on markets
- commoditiesTradeable raw materials
stock indices · regulators · exchanges · contract expiration · limit order · risk management · clearinghouses · brokers · interest rates · institutional investors · agricultural products · metals · commodity prices · technical analysis · economic forecasting · market makers · circuit breakers · long position
- risksrisk, gamble, bet, wager, chance it
- agribusinessagribusiness, farm, farms, corporate farms, factory farming
- investingstocks, stock, bonds, investing, investor
- stock marketstock, shares, stocks, stock market, broker
- brokeragebrokers, commissions, fees, brokerage accounts, dealers
- commodities tradingcommodities, commodity markets, commodity prices, hedging, speculation