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how futures contracts are traded in the commodity market?

how futures contracts are traded in the commodity market?

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A future contract is a legal agreement to buy or sell a particular commodity asset or security at a predetermined price at a specified time in future.The main purpose is to minimise the risk of price fluctuations.

Future contract are traded in commodity market by agreement to buy or sell commodity at a predetermined amount on a specific date in the future.Commodity futures are available for a variety of products like wheat, cotton, petroleum, gold etc.it works as if the price of the commodity goes up, the buyer of the futures contract makes money. He gets the product at the lower, agreed-upon price and can now sell it at higher market price. If the price goes down, the future seller makes money.

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