Who are commodity brokers?

Firms and individuals who are often collectively called commodity brokers include: Floor Broker/Trader: an individual who trades commodity contracts on the floor of a commodities exchange.

What are commodities futures?

Commodities futures are contracts that stipulate the price, volume, and date of the transaction. Commodities fall under the three major categories: food, metals, and energy. Futures contracts are sold on an exchange, which makes the transaction safer. If the price of the underlying commodity goes up, the buyer of the futures contract makes money.

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.

What derivatives do commodity brokers trade?

Historically, commodity brokers traded grain and livestock futures contracts. Today, commodity brokers trade a wide variety of financial derivatives based on not only grain and livestock, but also derivatives based on foods/softs, metals, energy, stock indexes, equities, bonds, currencies, and an ever growing list of other underlying assets.