July 27, 2008
what's futures? what's commodity? what is the different? thx?
THE asked:
help me clarify the terms. is futures the general term?? under future trading there is commodity trading and future trading.
help me clarify the terms. is futures the general term?? under future trading there is commodity trading and future trading.
so is the commodity trading for gold, corn……and the future for index trading and bonds???
thank you
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Comments on what's futures? what's commodity? what is the different? thx? »
a commodity is a sort of necessity (grains, metals energies etc).
other types of things traded as futures are currencies, bonds, industrials etc.- but they are not "commodities"
futures is descriptive….. futures are anything bought or sold now with the intention of taking delivery at a "future" date. you buy/sell futures on margin as opposed to say stocks where your put up full dollar value.
theres much more to it than this but it should answer your q
Commodities are actual goods, futures are contracts to buy or sell a specified amount of a commodity on a future date.
Some times these terms are used interchangeably but there are also futures on financial instruments - S&P, etc.