: Alex is "short" (he promised to sell at $1.10). Since the price is now $1.50, he is facing a loss.
: Her contract at $1.10 is now very valuable because she "locked in" a lower price. how to buy commodity futures
: Most traders like Sarah and Alex never actually touch the physical coffee. Instead, they "liquidate" or close their positions before the delivery date. : Alex is "short" (he promised to sell at $1
Basics of Futures Trading * A commodity futures contract is an agreement to buy or sell a particular commodity at a future date. * Commodity Futures Trading Commission | CFTC (.gov) How To Invest In Commodity Futures - SmartAsset how to buy commodity futures