is called futures trading.
Futures trading refers to the practice of purchasing commodities at a predetermined price with the intention of receiving delivery on a future date. This enables traders to hedge against potential price changes and mitigate risks. The futures market is highly regulated and involves various parties such as buyers, sellers, and brokers. Understanding the dynamics of futures trading is crucial in making informed investment decisions. As a knowledgeable professor in finance, I will guide you through the intricacies of this fascinating trading practice.
