The commodity futures business serves to cover risks in domestic and foreign trade. A German importer is often subject to a considerable price risk, e.g. B. if he trades in foreign raw materials or processes them. Price fluctuations are z. B. given with grain, oil, coffee, sugar or metals.
In principle, the importer has an interest in hedging the price risk. On the basis of the subsequent fulfillment of the future commodity transaction, he concludes a standardized contract that contains a price fixed for the closing date.
Large commodity exchanges on which generic purchases of reasonable goods that are not available can be found in New York, Chicago and London in particular. The following are considered contract partners on the commodity exchange:
Companies with opposing price expectations for a commodity in the future.
Companies with different commercial interests, which often belong to the field of economic policy.
Speculators and investors who want to use the price risk for business.
In the context of speculation, the bulls expect price increases and the bears expect price drops. For the speculator, the prospect of high profits is crucial.