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Commodity Futures Trading

Definition

Commodity futures trading involves contracts to buy or sell a commodity at a predetermined price on a specified future date. While traditionally applied to physical goods like oil or agricultural products, this concept extends to digital assets that regulators classify as commodities, such as Bitcoin. These contracts allow market participants to speculate on future price movements or to hedge against price volatility. Understanding futures markets is essential for comprehending advanced trading strategies and market sentiment in the digital asset space.