Commodity Futures 101: Learn How to Trade Commodity Futures
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Commodity futures contracts allow you to directly purchase a wide variety of commodities. Commodities include corn, wheat, soybeans, gold, silver, crude oil, cocoa and coffee, but there are many others. But why are these contracts called futures?
They're called futures because when you buy and sell these commodities, they are not to be delivered until a specified future date. When you buy or sell a futures contract, all you have to do is put down a good faith deposit, similar to the way you would when you open escrow on the purchase of a new home.
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