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.
Related Terms
Basis Trading
Basis trading refers to futures trading strategies that focus on the difference between the spot...
Annual Report
An annual report is a comprehensive document that provides detailed information about a company's financial...
Capital Gains Tax
In India, capital gains—profits from selling assets—are taxed based on asset type (equity or debt)...
CANSLIM
CANSLIM is a seven-step strategy used to pick growth stocks by combining both fundamental and...
American Option
An American Option grants its holder the flexibility to exercise the contract at any point...
Basing
Basing occurs when a security’s price moves sideways after an extended decline, forming a “base”...
