Investor Glossary-commodity futuresInvestor Glossary-commodity futuresInvestor Glossary-commodity futuresInvestor Glossary-commodity futuresInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Commodity Futures

The HTML to link to this page
 

Commodity futures are futures contracts for delivery of commodities. The oldest commodity futures market is the Chicago Board of Trade (CBOT), which began trading the first futures contract, a standardized forward agreement, in 1865. All the earliest commodity futures were for agricultural products. Today, commodities futures contracts also exist for natural resources such as petroleum products and precious metals. Like all futures markets, trade in commodity futures is known to be a zero-sum game, meaning that one party to a trade makes as much as the other loses. Because commodity futures markets have many participants who have spent years becoming an expert in one commodity, beginning to trade in commodity futures is extremely risky for the amateur investor. The beginner's commodity futures losses are likely to be the veteran's commodity futures gains!



Rate this commodity futures definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: dividends payable, limit order, phantom income, deferred tax, wholly-owned subsidiary, cancelled check, LIBOR, 1031 exchange, average price per share, per diem, APR, covered put, irrevocable trust, inflation, labor relations, current ratio, required rate of return, ex-dividend date, stock split, retained earnings, risk management, minority interest, open position, liquidity ratio, command economy, class C shares, ex-dividend, 144a, debt service coverage, diluted share, option premium, balance sheet, margin rate, real GDP, Key Rate Duration, reverse mortgage, FTSE, deferred revenue, FICO score, annual return, stock market close, 401a, EBITDA, implied volatility, 1035 exchange, Zero Cost Collar, quality assurance, VIX, in escrow


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use