An Introduction to U.S. Commodity Futures Markets: A Historical Perspective Along with Commodity Trading Principles

Abstract

This paper provides an introduction to U.S. commodity futures markets, which is especially relevant for individuals in developing markets who are newly embracing market solutions to financial uncertainty. The paper specifically covers the following topics: (1) the beginning, transformation, and current challenges for U.S. commodity futures markets; (2) design considerations for a commodity futures program; and (3) a concrete example of a commodity investment process in action.

Keywords: commodity futures, history, futures markets, investment process

JEL Classification: G1, G11, N2