Futures question?

[Mohican]

hi,

Being ignorant in trading, like to ask whether the futures contracts like gold ,oil etc are commodities or paper that are being traded. I mean can we convert those contarcts to real gold or oil?

 

[oatman]

They are deliverable.

 

[blackcab]

They're contracts for the real thing. If you're long a commodity and the contract expires, you'll get a big delivery on your doormat. If you're short and the contract expires, someone's going to want their orange juice.

 

[MGBRoadster]

They're contracts for the real thing. If you're long a commodity and the contract expires, you'll get a big delivery on your doormat. If you're short and the contract expires, someone's going to want their orange juice.

Hope I remember to close that QM long before Tuesday - even If I cleared out the garage AND the shed I still wouldn't have room for 500 barrels

Mohican - I think most brokers will liquidate your position at Contract expiry