Information from the Washington State Department of Financial Institutions

The Basics of Investing in Commodities

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What Are Commodities?

Commodity futures contracts are an agreement to buy or sell a specific quantity of a commodity at a specified price on a particular date in the future.

Commodities can include:

  • Wheat and agriculture
  • Gold
  • Oil
  • Metals

Commodities sales and purchases are typically handled through a commodities broker. Anyone who trades futures with the public or gives advice about futures trading must be registered with the National Futures Association (NFA).

Verify Licenses

Anyone who trades futures with the public or gives advice about futures trading must be registered with the National Futures Association (NFA). Before investing in commodity futures, check that the individual and firm are registered. The Commodity Futures Trading Commission (CFTC) is the federal agency that regulates futures trading.

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