Sentences with phrase «of a commodity futures contract»

The price of a commodity futures contract is not the market's forecast of what the spot price will be in the future.

Although physical delivery is an important mechanism for certain energy, metals and agriculture products, only a small percent of all commodities futures contracts are physically delivered.

This analysis compares the returns of the largest commodity ETFs to the returns of the commodity futures contracts represented in each ETF.

The purchased commodity will usually be obtained at a good price, while the commodity sold will earn a good return on investment that covers the cost of the commodity futures contract.

The buyers and sellers of commodity futures contracts have obligations.

According to them, the first role of a commodity futures contract is to be a hedging tool of the physical commodity, and it should be representative of where the traders are located.

Roll return is an important component of commodity futures contracts» investment performance.

(A hedger is not interested in making a profit off the movements in price of a commodity futures contract, but rather in shifting his risk of loss on the commodity itself due to adverse price change.)

Part of the reason that the price of a commodity futures contract is not a prediction of the future price of the commodity is that many of the largest participants in the futures markets do not buy / sell futures contracts based on a forecast of what's going to happen to the price.

(e) Engage in manipulative acts or practices regarding the price of a commodity futures contract;