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COMMODITY & FUTURES CONTRACTS
Buying a Commodity & Futures Contract = is when a commodity & futures contract are purchased in anticipation of an increase in value made with the selection of a specific price & date for a potential profit. Similar to buying call options strategy.
This is similar to options except investing in a company is not made but rather in an Energy, Metals, Agricultural Products, Industrial Products, Livestock, Indexes or Electricity.
Selling a Commodity = is when you sell a commodity and futures contract in anticipation of a decline in value made with the selection of a specific price & date for a potential profit to be made. Similar to buying put options.
Benefits & Risks = Similar to Options Trading as investments can expire worthless or sold prior to expiration for a potential profit.