Glossary Background

Commodity Futures

A commodity futures contract is an agreement between two parties to buy or sell a commodity—such as gold or silver—at a set price and future date. It’s a binding obligation used by traders to lock in prices, hedging against fluctuations. This tool helps manage risk or speculate on price movements in commodities markets. Whether for profit or price stability, futures contracts are key in trading, offering a structured way to navigate the volatile world of raw materials.