Commodity Derivatives: Basics
Interactive

Commodity Derivatives: Basics

Intuition Publishing
Updated Sep 23, 2020

Derivatives on energy, metals, agricultural products, and other commodities, were the first derivatives, and are still widely used today. They are used for hedging, speculating, and arbitraging purposes, and here we outline the different types of commodity derivative, and discuss OTC and exchange-traded commodity derivatives. Finally, we look at the two methods of settlement of commodity derivatives.