InvestorQ : Do I understand right that commodity futures are a lot like trading stock futures?
Arti Chavan made post

Do I understand right that commodity futures are a lot like trading stock futures?

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Mahima Roy answered.
3 years ago
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In a way, the commodity futures contracts are exactly like the contract in stock futures and stock futures in the sense that they operate within a regulated market mechanism which lays great focus on managing risk. The difference is that commodity futures can actually provide a platform to hedge your commodity risk since it permits delivery against settlement. With the SEBI permitting institutional investors like Foreign Portfolio Investors (FPIs) to participate in commodity futures and options in a big way, one can expect greater depth and liquidity in the commodity futures markets in the months to come. That could be the icing on the cake!

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