Perhaps no other part of the financial marketplace has received as much scrutiny as the futures market. Unlike other markets, where tangible items change hands (stock certificates, diamonds, real estate, and so on), the participants in the futures market deal in promises. A trader can buy or sell thousands of bushels of wheat or tons of soybean meal and have absolutely no intention of ever growing the commodity or taking delivery of it. In fact, fewer than 2 percent of the commodities underlying all futures contracts are ever actually delivered. Read more »

Posted: February 1st, 2008 under Commodities Futures, Futures Contracts, Futures Market, Futures Prices, Gold Futures.
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