Understanding Commodities - Part1

What is a Commodity Market ?
Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts. These contracts are known as Future contracts.

What are Commodities Future ?
Commodities Future contract is a standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality for a price agreed today (the futures price or strike price) with delivery and payment occurring at a specified future date, the delivery date.
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