Who can buy/sell commodity futures?
Commodity futures can be made use of by any investor, producer, trader etc. For a producer of a commodity, selling of futures ensure that he can sell a particular quantity of his commodity at a particular price. For an investor, who is not interested in physical transaction of commodities, these futures act as good investments. Assume that you bought one gold future contract (1 Kg.) at Rs.7980 per 10 Gms. After a week, if the price becomes Rs.8120 per 10 Gms, your profit is Rs.14000 per contract. A commodity trader can use futures to make sure that he is guarded against any change in prices.
