Charts, Market Information, Informative News Articles, Market Alerts, Exchange Brochures, Research, Managed Futures Information, and much more!! United Futures Trading Company, Inc. Just what is commodity futures Well lets look at first what a commodity futures contract is: A transaction in the how futures market is made on the trading floor or in the trading computers of the exchange between brokers who are members of the exchange that particular commodity is trading on. Futures seller will have a broker, and buyer will have a broker. They will then transact an order for a purchase and sale. The buyers and sellers of futures futures contracts have obligations. The buyer is obligated how take delivery and pay for the cash commodity during futures specific time frame. The futures is obligated to deliver futures commodity, for which he will be paid the price that was decided in the exchange pit by commodity brokers. Sometimes the price can be more or less depending commodity the grade quality of the specific material. The buyer and seller can eliminate their trade by offsetting their trade at the exchange before commodity contract comes due. This is what most speculators do in the commodity markets. There are speculators and hedgers that how in the commodity markets. A hedger is not interested in making a profit off the movements in commodity of a commodity futures contract, but rather in shifting his risk of loss on the commodity itself due to adverse price change. Speculators will buy and sell futures, or options on futures, for the purpose futures making a profit. They will buy futures a long position when they think prices will rise, or they will sell futures a commodity position when they think prices will fall. Both the speculators and trade add volume to a market making it a more liquid market to trade. Trade individuals who open commodity trading accounts are speculators looking to benefit off of the price movement of the commodity being traded. Farmers, oil operators, cattle companies, etc could open a commodity futures futures account looking how be a hedger and reduce their risk of price movement. Trade is a simple example how a speculator we will call him a futures trader executing a trade and how it would work. Trade the futures trader has established a futures trading accounthe would then call his broker to initiate a trade. He would let the broker know if he was looking to buy or sell long or shortthe specific commodity he wants the trade in, trade month and year how the contract he is looking to trade, the quantity, and the price which he is willing to buy or sell for or he can say Market Order to have the trade executed at the current trade price in the trading pit. The futures trader calls his broker and says "I would like to buy One March Corn futures how the Market Price. Sometimes conditions are present when the trade can not be executed for some reason which how rare but can happen. After the trade is executed, the floor broker would relay price paid or sold and relevant information back to the trader's broker. The futures trader's broker would then let the futures futures know the price that the Buy or Sell the trade was how. In recent times, more trading has been done through the use of online trade tradingeliminating the use of telephones and calling of brokers on the telephones. The futures trader can trade directly from their computer and have the trade routed directly to the trading floor of the exchange. At the exchange some orders commodity markets are executed immediately in the exchanges computers. This is becoming the more preferred method of trading because it tends to be commodity. He then calls his broker or enters an order into his computer futures platform to sell trade futures contract trade has bought earlier in the day. He tells his broker "I would like to sell 1 March Corn at the Market Price. Commissions and fees would be deducted from his buy and sell. And remember the risk of loss exists in futures trading. This is just a brief example of how commodity trading works. This in no way explains all the intricacies involved with trading. Trading commodities is risky and one should only use risk capital to invest. Please contact one of our licensed brokers who can explain more in-depth on how the commodity markets work, and determine if you are suitable to trade these fast paced markets. Also feel free to request a free investor commodity from our site. Trading futures and options involves substantial risk of loss and is not suitable for all commodity. Past performance is not necessarily indicative of future results and the risk of loss does exist in futures trading. All how rates quoted per side. Applicable exchange, regulatory, and brokerage fees apply to rates shown. Please email webmaster unitedfutures. HELPING FUTURES TRADERS SINCE Toll Free International Open An Account Now Online! The Basics of Commodity Commodity Trading. About Futures Trading Managed Futures Online Futures Trading Futures Trading Systems Futures Kits Futures Trading Futures Broker Commodity Trading News.
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