Future Commodity Trading on sawdagger.com
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Future TradeA future trade is a contract allows the contract holder to lock in the "future" delivery of certain product/services at a specific price and quantity on a specific date. Future trade is the concept of Commodity Exchange.
What is Commodity Exchange?Commodities exchanges usually trade futures contracts on commodities, such as trading contracts to receive something, say corn, in a certain month. A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers.
Economic Importance of Commodity Futures MarketsBe it currencies, agricultural commodities, live stocks, metals, interest rates or fuels, all of them are affected by the price movements. A risk is always associated with such price movements and can mean a lot in the final analysis over the difference between gain and loss in a company's business which is open to such price risks. The commodity futures industry has played a major role in helping such businesses manage that price risk.
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Submitted on: 2013-08-26 03:43:06