Thursday, February 23, 2012

Futures Contract

Parent Category: Commodity Price Category: Futures

A futures contract

A futures contract is a commitment to make or take delivery of a specific quantity and quality of a given commodity at a specific delivery location and time in the future. All terms of the contract are standardized except for the price, which is discovered via the supply (offers) and the demand (bids). This price discovery process occurs through an exchange’s electronic trading system or by open auction on the trading floor of a regulated commodity exchange.

Example: trading platform for commodities on 09/02/2012

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Ukraine 30.1%
United States 17.1%
Russian Federation 10.9%
Turkey 3.4%
India 2.3%
Japan 2.2%
United Kingdom 2.2%
France 2.1%
Germany 2%
Poland 1.6%
Switzerland 1.4%
Bulgaria 1%
Australia 1%
Italy 1%
China 1%
Belarus 1%
Netherlands 1%
Singapore 0.8%
Serbia 0.8%
Canada 0.8%
Greece 0.7%

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