Futures and Commodities Trading

Documentary collection is a method to buy and sell trade goods. The exporter’s bank gives the title of the goods to the importer’s bank in exchange for the importer’s bank releasing the funds to pay for the goods.

The COT is a weekly publication by the Commodity Futures Trading Commission (CFTC) that gives information about the number of futures and options contracts in U.S. derivatives markets. It is one of the fundamental data sources for anyone interested in the U.S. futures or options markets.

The CME is a major futures trading exchange. Organized as the company CME group, it owns other exchanges such as the New York Mercantile Exchange (NYMEX).

A futures spread is a trading strategy that attempts to profit from a change in the difference in price between two futures, known as the spread. They buy one future and sell another, with which one being bought and which one being sold depending on if the trader thinks the spread will widen or narrow.

A futures exchange is a market in which traders buy and sell futures and often other derivatives. They have a similar purpose to stock exchanges.

The delivery price is the price at which one party agrees to sell an asset as part of a futures or options contract.

A warehouse receipt is a document given by the warehouse storing the commodities used in futures markets. The receipt helps prove to buyers that the requested goods are both secure and of the right quality.