Commodities

In this section

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Futures Basis

Futures basis, delivery month, convenience yield, contango, backwardation, and wide-basis mechanics.

Brent Crude

North Sea crude oil benchmark used in global oil pricing, futures contracts, and energy-market risk management.

Cash-and-Carry Arbitrage

Cash-and-carry arbitrage buys a spot asset and sells a futures or forward contract when the futures price exceeds full carry cost.

COMEX

CME Group designated contract market best known for metals futures and options, including precious, base, and ferrous metals.

Commodities in Stocks

How commodity prices affect stocks, sectors, ETFs, producers, consumers, and commodity-linked equity exposure.

Commodity Contract

Agreement that defines commodity quantity, grade, price, timing, delivery, and settlement obligations.

Commodity Futures

Exchange-traded futures contracts on agricultural, energy, metal, livestock, and other commodity markets.

Commodity Futures Contract

Standardized exchange-traded contract for future commodity delivery or cash settlement under specified contract terms.

Commodity Markets

Commodity spot markets, benchmark contracts, standardized grades, and stock-market exposure to physical commodities.

Convenience Yield

Implied benefit of holding a physical commodity instead of only holding a futures or forward contract.

Delivery Options

Embedded flexibility in futures or deliverable contracts over delivery timing, eligible instrument, location, quality, or quantity.

Derivatives Venues

Market-venue terms for futures, options, swaps, commodity exchanges, and derivatives clearing or execution platforms.

Fixation

Benchmark or contract process that fixes a reference price for valuation, settlement, hedging, or physical-market transactions.

Futures Pricing

Commodity futures, futures prices, futures-implied rates, outright positions, and exchange-traded futures mechanics.

Contracts and Basis

Futures contracts, futures prices, basis, delivery months, contango, backwardation, and convenience-yield mechanics.

Futures Price

Quoted price of a futures contract and the market input used to value, hedge, or settle future exposure.

Global Exchanges

Non-U.S. futures and commodity exchange terms used in derivatives, commodity, and market-structure analysis.

NCDEX

National Commodity and Derivatives Exchange is an Indian commodity derivatives exchange used for agricultural commodity price discovery and hedging.

New York Cotton Exchange

Historical cotton futures exchange name now mainly relevant to ICE Futures U.S. cotton-market history and contract lineage.

New York Mercantile Exchange

Full-name reference for NYMEX, the CME Group designated contract market associated with energy and commodity futures.

NYMEX

New York Mercantile Exchange, a CME Group designated contract market associated with energy and commodity futures.

Precious Metals

Gold, silver, platinum, and palladium as investment, industrial, and futures-market commodities.

Spot Commodity

Physical commodity bought or sold for prompt delivery at a current spot-market price.

Spot Delivery Month

Nearest futures delivery month in which the contract can move toward delivery or final cash settlement.

Standardized Commodity

Commodity defined by uniform grade, quality, quantity, and delivery specifications so it can support liquid trading and hedging.

Stocks vs. Commodities

Comparison of equity ownership claims with physical commodity exposure, futures, funds, and commodity-linked companies.

Wide Basis

Large difference between a cash-market price and the related futures price, often creating hedge or delivery risk.

Revised on Sunday, June 21, 2026