commodities futures definition
commodities futures definition, are the contract, which is used for the purchase or sale of a specified quantity of a certain product, called андерлаингом. In the contract, in the time of the sale, the price is fixed according to which it will be executed at a specified future date. When will this date, the buyer must pay specified in the commodity future quantity of a commodity at a predetermined price, and the seller must, in turn, deliver to the buyer a specified quantity of goods.
As the underlying asset for the commodities futures are physical goods, such as gold, silver, other precious metals, grain, coffee, etc. Commodity futures are based simultaneously on the perceived value of the goods today, and at some point in the future.
commodities futures definition:
commodities futures has two key features. Firstly, the physical product already exists. Secondly, there is the expectation on the part of the buyer that the value of the goods will continue to grow for a long time. When these factors occur, a buyer will want to buy a commodity futures contract with the seller. At this price, which will ultimately paid, is acceptable to the seller, that is, he will make a profit. At the same time the customer expects that the value of goods rise higher than the price specified in the contract, and he eventually receive income from their investments.
commodities futures are one of the most active forms of investment. Moreover, some investors form their investment portfolios by the commodities futures. A more conservative investment strategy for the inclusion in the portfolio of not only the commodities futures, and options on shares and bonds. Although commodity futures carry a certain degree of risk, they often are less volatile than some other forms of investment. Without any catastrophic event, which will greatly reduce the proposal of physical goods, the yields of commodity futures can be accurately predicted.
