How To Buy Commodity Futures -

: Alex is "short" (he promised to sell at $1.10). Since the price is now $1.50, he is facing a loss.

If you want to start trading like the speculator in our story, follow these steps: Basics of Futures Trading | CFTC how to buy commodity futures

: Most traders like Sarah and Alex never actually touch the physical coffee. Instead, they "liquidate" or close their positions before the delivery date. : Alex is "short" (he promised to sell at $1

: Three months later, a freeze in Brazil causes coffee prices to jump to $1.50 per pound. how to buy commodity futures

: Sarah and Alex enter a futures contract through a regulated exchange. They agree on a price of $1.10 per pound for delivery in six months.