What Are Commodity Futures Brokers?
Commodity futures brokers are financial professionals who specialize in buying and selling commodity futures on behalf of clients. They may work for financial firms, some of which may focus exclusively on trading in commodities, or they may work as independent brokers. Like other brokers, commodity futures brokers operate on a commission, taking a cut of every trade they facilitate. Thus, it is in their best interest to execute the best trade possible on behalf of the client. Commodity futures contracts are a type of derivative contract. Put simply, a commodity futures contract is an agreement to buy a commodity on a set date at a set price. The contract is set long before the commodity is available, with people being forced to estimate the market conditions which may appear months in the future. For example, someone buying a commodity futures contract for wheat might believe that the harvest is going to be meager, in which case wheat will sell for a high price, and buying up the suppl
