Commodity futures are those which are purchased and sell at a predetermined price and at a specified time in future, these contracts are of a standard quality and quantity and are traded on future exchange when a buyer buys a future contract is taking an obligation to purchase the underlying asset when the contract expires and the person who sells the contract also takes an obligation to give the asset when the contract expires the terms futures and future contract are one and the same thing when anybody says futures they refer to a specific type of future such as gold, silver, oil etc.

These are some points about commodity futures and the tips given for these types of securities are
commodity future tips
for the future. Now let us see what is the commodity market it is a market where various types of commodities such as base metals like gold, silver, copper, crude oil are traded these come under MCX that is Multi commodity exchange and other commodities traded are wheat coffee sugar and cocoa which come under NCDEX whose full abbreviation is National commodities and derivative exchange commodities which come under cash are wheat soybeans corn crude oil gold and silver etc.

There is also a spot contract in a commodity market where delivery and payments of commodities are done quickly or in a short span of time and physical trading includes a visual inspection of the farmers market on the other hand in derivative markets trading can be done without any inspection.

Then OTC i.e. over the counter commodities are those which are traded without an exchange because exchange trading offers good transparency and regulated conditions in this type of trading many commodity markets are trading in agricultural products and raw materials like wheat, barley, sugar, maize, cotton, cocoa, which are based on the contracts in this exchange includes spot prices, forwards, futures and options on futures.

Swap is another type of derivative in which former party exchanges latter's financial instrument to another party's financial instrument now commodity classes are various types of commodity sections which are traded such as minerals, fuels, oils and distillation products electrical and electronic equipments machinery such as boilers and reactors than iron and steel organic chemicals and pearls and precious stones metals and coins etc and energy commodities like crude oil and natural gas are also traded commodities which are traded in other countries include rubber in Singapore commodity exchange palm oil in Malaysian ringgit wool is also traded.

Author's Bio: 

I am a research analyst from Money maker research pvt limited and i provide daily updates regarding stock and commodity please go through our official site for free commodity tips