What are Futures/Commodities?

Futures and commodities are anything for which there is demand but which is supplied without significant differences across a market. One of the characteristics of a commodity good is that its price is determined as a function of its market as a whole. Well established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, ethanol, sugar, coffee beans, soybeans, aluminum, rice, wheat, gold and silver. Futures and commodities are typically traded in an account held with a FCM and may be traded by a commodities trading adviser (CTA) or by the individual owner.