What are Energy Futures?

Energy Futures include crude oil and its auxiliary products such as fuel oil, gasoline, and other energy futures such as propane and natural gas. Crude oil is the most widely used energy source in the world, and at least in the short term no energy can replace its position. Most crude oil production is concentrated in the Middle East, so crude oil price fluctuations are susceptible to the OPEC's decision on oil production, but the United States is a large country using crude oil, so it still has considerable fluctuations in crude oil prices. Influence. The world's largest energy futures exchange is the New York Mercantile Exchange (NYMEX).

Energy Futures includes

Gasoline is kind of

Fuel

Petroleum

Futures contract (English: Futures contract ), referred to as futures (English: Futures ), is a trading method that spans time. By signing a contract, the buyer and the seller agree to deliver the specified amount of cash at the specified time, price and other trading conditions. Generally, futures are concentrated on futures exchanges, and they are bought and sold under standardized contracts. However, some futures contracts can be bought and sold through over-the-counter trading, which is called OTC contracts .

Futures are a kind of derivative instrument. According to the type of the spot object, futures can be divided into two categories: commodity futures and financial futures. Among the participants in futures trading, arbitrageurs (or hedgers) lock in profits and costs by trading futures, and reduce the risk of price fluctuations caused by time. Speculators take more risks through futures trading and wait for opportunities to make profits from price fluctuations.

Many futures markets develop from forward contracts, which refer to one-on-one, cross-time buying and selling contracts, and the transaction details are agreed upon by the buyers and sellers. Futures contracts are standardized by exchanges, allowing traders in all directions to easily match transactions on the same platform. Options (options) are another derivative that are derived from futures contracts. ^[1]