What is the futures price of a commodity?
A commodity’s futures price is based on its current spot price, plus the cost of carry during the interim before delivery. Cost of carry refers to the price of storage of the commodity, which includes interest and insurance as well as other incidental expenses.
What is the current price of commodities?
Commodity Prices
| Energy | Price | % |
|---|---|---|
| RBOB Gasoline | 3.37 | 2.26% |
| Uranium | 56.70 | 11.99% |
| Oil (Brent) | 111.66 | 2.55% |
| Oil (WTI) | 106.58 | 2.30% |
What is commodity and futures market?
Futures and commodities trading refers to speculative bets on the future price of a product like oil, corn, wheat and cattle. Since these are bets on the future prices of these products, commodity futures are highly risky.
How do you buy commodities futures?
One way to invest in commodities is through a futures contract. A futures contract is a legal agreement to buy or sell a particular commodity asset at a predetermined price at a specified time in the future.
What is today’s price of oil?
| WTI Crude | 105.6 | +1.34 |
|---|---|---|
| Brent Crude | 110.3 | +1.52 |
| Natural Gas | 7.292 | +0.295 |
| Heating Oil | 3.889 | +0.171 |
| Gasoline •2 days | 3.341 | +0.050 |
What is the difference between a spot market and a futures market?
Future Price. The main difference between spot prices and futures prices is that spot prices are for immediate buying and selling, while futures contracts delay payment and delivery to predetermined future dates.
What are stock market futures based on?
They are derivatives because their value is based on the value of an underlying asset, such as oil in the case of crude oil futures. Like many derivatives, futures are a leveraged financial instrument, offering the potential for outsize gains or losses.