What is the commodities futures trading commission?

'Commodities Futures Trading Commission (CFTC)' is explained in detail and with examples in the Trading edition of the Herold Financial Dictionary, which you can get from Amazon in Ebook or Paperback edition. The CFTC is the regulatory agency whose acronym stands for the Commodities Futures Trading Commission.

What is commodity trading?

Commodity trading is the exchange of different assets, typically futures contracts, that are based on the price of an underlying physical commodity. With the buying or selling of these futures contracts, investors make bets on the expected future value of a given commodity.

How do I trade commodity futures?

“Traders can access these markets by having an account with a brokerage firm that offers futures and options,” says Craig Turner, senior commodities broker with Daniels Trading in Chicago. You will owe a commodity futures trading commission each time you open or close a position.

How does the CFTC regulate the futures market?

In order to sufficiently oversee these markets, the CFTC regulates the following organizations: trading organizations such as designated contract markets which are the exchanges that host futures trading, and swap execution facilities, which are platforms that allow participants to buy and sell swaps.