Image Commodities can be traded on either spot markets, or in the form of futures. In the form of futures (or options),as we do it, what is traded is not the good itself, but a contract to buy or sell the commodity for a certain price by a stated date in the future. Hence the name. Most commodities trading is done in the form of futures or options and it's that scenario that gives rise to most of the huge potential for profit and loss. It also gives rise to all the interesting aspects of trading, since it inherently involves predictions of the future.
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Aug 29, 2011 17:55:56Posted from IP: {59.161.*.*} India
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