The Futures Market is a critical part of the economy, not just in the United States of America, but also around the globe. As defined by the Commodity Futures Trading Commission, the economic purpose of the Futures Markets is to allow commodity producers and consumers to engage in "hedging" in order to limit the risk of losing money as commodity prices change. An example of this would be a Kansas wheat farmer who plants a crop runs the risk of losing money if the price of wheat falls before harvest and sale. The farmer can minimize this risk by selling wheat futures contracts, which guarantee that the farmer will receive a predetermined price. Hedging helps the economy function by allowing commodity producers (such as farmers and ranchers) and consumers (such as millers) to conduct business with greater certainty over how much they can expect to earn from and pay for commodities. Provided below are just a few of the many Futures and Options Markets which trade differently in conjunction with divergent market specifications. For more information, please contact our office in order to speak with one of our commodity brokers that has your best interest.