Commodities

Futures and commodities speculators can take advantage of highly leveraged exposures in both financial and nonfinancial markets (commodities such as energies, grains, meats and metals). That means they can buy futures contracts by depositing just a small percentage of the overall contract price. Their goal is to profit from changes in the price of the futures contract.

Hedgers, those who hold a specific commodity (asset) or have a specific exposure (such as energy cost), often take a position opposite of the cash market to help reduce risks.