What are Futures Markets?
Futures markets are where commodities and futures contracts are bought and sold. With a wide range of costs and variables, the futures market is one of the most popular day trading markets. However, the futures market is also risky and complicated, so before you get involved in such investing, it’s important to have a basic understanding of how the futures market works. Futures contracts are bought and sold in the futures market. The terms are called a futures contract and they specify the price and quantity of a commodity as well as the delivery date. Many futures contracts are bought and sold with some up-front cash, with the balance due at delivery. The reason for exchanging futures contracts is to minimize any loss in value associated with the commodity. One example of how futures work is with agriculture. In the spring, a certain farmer wants to grow corn and wants to ensure a fair price for his crop. He talks to an agricultural buyer about purchasing the corn in the fall. They ag
