Basics of Futures Trading and Trading Platforms to Choose From - Futures trading is a form of investment which involves speculating on the price of a commodity going up or down in the future. This presentation explains the basics of futures trading and some of the challenges a new trader may face. TYPES OF FUTURES CONTRACTFutures contracts can be broadly classified into 2 categories Commodities futures Financial futures 3. Commodity futures Metals Major metals traded with futures contracts include copper, gold, platinum, palladium and silver, which are listed on the New York Mercantile Exchange which has merged with the Chicago Mercantile Exchange. Energy The most popular energy futures contracts are crude oil, crude palm oil, heating oil and natural gas. Forwards and Futures on Commodities have special features Forwards and Futures traded in the market Physical forward delivers physical every day for a month, like an average of the spot price NYMEX futures, settles on physical forwards NYMEX Lookalike forwards, settles on NYMEX future price at expiry