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Grain farmers use commodities futures options for getting their products on the market. Without commodities futures options, farmers would have a tough time selling their products.

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Q: What are commodities futures options used for?
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What is a buyer and seller of commodities for profit called?

It depends: are we talking about commodities CONTRACTS, or the commodities themselves? A person who specializes in buying and selling commodities futures and options is a commodities broker. Someone who buys and sells the physical good--lumber, wheat, whatever--is a commodities dealer.


What is meant by the term commodities and futures?

Commodities are services and goods. Soft commodities are goods that are grown, hard commodities are goods that are mined. A futures is a contract to buy commodities or financial instrument set in certain time in the future. These contracts are traded.


Which of these agencies regulates commodity exchanges and trading in agricultural metal and other commodities?

commodities futures trading commission


Why does a commodity futures market exist within the broader commodities market?

The commodity futures market was invented to stabilize the market for consumers of bulk commodities. If you make breakfast cereal and you use a million bushels of wheat a year, it's nice to know you can get the wheat you need and nicer to know what it will cost. Futures eliminate uncertainty.


Why a commodity futures market exists within the broader commodities market?

The commodity futures market was invented to stabilize the market for consumers of bulk commodities. If you make breakfast cereal and you use a million bushels of wheat a year, it's nice to know you can get the wheat you need and nicer to know what it will cost. Futures eliminate uncertainty.

Related questions

What is a buyer and seller of commodities for profit called?

It depends: are we talking about commodities CONTRACTS, or the commodities themselves? A person who specializes in buying and selling commodities futures and options is a commodities broker. Someone who buys and sells the physical good--lumber, wheat, whatever--is a commodities dealer.


What financial instruments are traded through the CME?

The Merc's diverse product line consists of futures and options on futures in agricultural commodities, foreign currencies, interest rates, and stock indexes.


What is meant by the term commodities and futures?

Commodities are services and goods. Soft commodities are goods that are grown, hard commodities are goods that are mined. A futures is a contract to buy commodities or financial instrument set in certain time in the future. These contracts are traded.


What type of stock is traded on the FTSE futures market?

The FTSE Futures Market trades a veritable cornucopia of stocks. The most popular items traded at FTSE include many different commodities and stock options.


What could one find on the website Futures and Commodities?

Futures and Commodities is a website dedicated to following the prices of commodities like natural gas, oil, and gold among others. The site also takes a look at the past and potential future of these commodities.


Which of these agencies regulates commodity exchanges and trading in agricultural metal and other commodities?

commodities futures trading commission


Futures and options?

Futures are contracts that allows you to buy certain commodities at a certain price by a certain date. Unless closed out, futures contracts are binding and the buyer of the contract must be able to buy the commodities binded by the contract.Options are contracts that gives you the RIGHTS but not the OBLIGATION to buy certain stocks or commodoties at a certain price by a certain date. The main difference is, you can choose to ultimately buy the underlying asset or not, its not binding on the buyer.


What are the provisions of the Commodities Exchange Act of 1922?

This act, along with its later amendments in 1936 and 1975, subjects commodities, commodity futures, and option trading to federal supervision and restricts trading to futures exchanges


Where can one find information on commodities futures trading commission?

ClearTrade, Unitied Futures, and Easy-Forex are three companies that offer information on how to trade commodities over the web. When you're ready to try it, all three websites also allow you to perform your trading with them.


Can you short a commodity?

No you can not. - - - - - Actually, shorting commodities futures is very commonly done.


What is the NASD series 31 exam taken for?

It's the exam that allows you to become a financial advisor.


Is commodities and futures are extremely speculative and carry a high risk?

yes. TRUE, YUP,