Crude Oil Future Prices.(1)

Investing in crude oil future prices is a way of guessing whether the price of crude oil will rise or fall in the future.

Many commodities are traded this way.

A crude oil futures investor signs a contract to buy a given number of oil shares for a given price at a future date.

On that date, the crude oil future contract is executed, and the investor determines whether the investment is a profit or a loss.

This is far different from regular stock market trading, in which shares are bought and sold for the current price only.

The whole crude oil future investing process appears to be a free for all. Investors guess at crude oil's future pricing, and make promises to buy oil shares at those prices.

What happens if the investor changes her mind?

What are the consequences if the investor refuses to buy the shares because the crude oil future price is unfavorable?

There are agencies in several countries with the responsibility to regulate future prices of crude oil and other commodities.



By BIG Mike