Futures Market

The futures market is a centralized exchange where buyers and sellers from around the world trade standardized futures contracts. Prices are driven by global supply and demand, and reflect a broad consensus. In that way, the futures market can provide estimates of future commodity prices.

Futures Contract

A standardized contract to buy or sell a commodity:
• in a fixed quantity
• of a fixed quality
• to a fixed place
• in a fixed time period

The buyer of a futures contract has right and obligation to buy the commodity.
The seller of a futures contract has right and obligation to sell the commodity.

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There is a risk of loss in futures and options trading. Past performance is not indicative of future results. The information contained in this publication is taken from sources believed to be reliable, but is not guaranteed by Commodity & Ingredient Hedging, LLC, nor any affiliates, as to accuracy or completeness, and is intended for purposes of information and education only. Nothing therein should be considered as a trading recommendation by Commodity & Ingredient Hedging, LLC. The rules and regulations of the individual exchanges should be consulted as the authoritative source on all contract specifications and regulations. CIH is an equal opportunity provider.

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