What are Commodity Futures: Examples of Usage, How They Work, and Futures in the Crypto World

Updated

July 17, 2025

Gambar What are Commodity Futures: Examples of Usage, How They Work, and Futures in the Crypto World

Jakarta, Pintu News – In the world of modern trading, one of the instruments often used by market participants to manage risk or gain profits is commodity futures.

This contract allows one to buy or sell a specific commodity in the future at an agreed price today.

Although often considered complex, futures contracts have a fairly systematic way of working and are widely used in the agriculture, energy, and precious metals sectors.

Interestingly, the concept of futures is also very relevant in the cryptocurrency world! Read the full information in this article!

What are Commodity Futures?

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Commodity futures are contracts of agreement between two parties to buy or sell a certain amount of a commodity at a certain price and time in the future. The commodity can be crude oil, gold, wheat, corn, natural gas, and so on.

These contracts are binding – unlike options which give rights, not obligations. If it is not closed early, the parties involved in the contract must settle it according to the original agreement.

Futures are often used as a hedging tool or for speculation purposes. In agriculture, for example, farmers can secure the selling price of their crops before harvest time arrives. Likewise, large companies that need raw materials in large quantities can avoid the risk of price fluctuations by locking in prices through futures contracts.

Real Example of Commodity Futures Usage

Imagine a soybean farmer expects to harvest 1,000,000 bushels in the next 12 months. If the futures contract for soybeans is currently at $15 (IDR244,725) per bushel and the production cost is $10 (IDR163,150), then the farmer can sell the contract to lock in a profit. In this case, the farmer needs 200 contracts, as each contract usually covers 5,000 bushels.

When the contract ends a year later, regardless of the current market price, the farmer will still sell his soybeans for $15 per bushel as per the contract. If the market price is $13 (IDR212,095), the farmer makes a higher profit than the market price. But if the market price rises to $17 (IDR277,355), the farmer loses the potential additional profit. This is the power and risk of futures contracts.

How Commodity Futures Work and Asset Types

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Most futures contracts will be closed out (netting) as the expiration date approaches. Settlement is made in cash based on the difference between the initial contract price and the closing price. Common assets traded in futures include gold, silver, crude oil, wheat, corn, and natural gas.

Futures contracts are named after the month of expiration, for example a “September Futures” contract means the contract expires in September. As many commodities are highly volatile, the potential for both profit and loss from these trades is huge. For this reason, risk management is very important when using these instruments.

Futures in the Crypto World: Easy, Secure, and Modern

The same concept is now also present in the world of cryptocurrencies. With crypto futures, traders can speculate on the rise or fall of the price of digital assets such as Bitcoin , Ethereum , Ripple , and Pepe Coin , without actually owning them.

The Pintu Futures platform makes it easy for users in Indonesia to access these instruments in a legal, transparent and secure manner.

Through Pintu Futures, you can enjoy the benefits of crypto price movements, whether the price goes up or down. Crypto futures contracts also allow the use of leverage, which provides greater profit opportunities – with commensurate risks.

That’s the latest information about crypto. Follow us on Google News to get the latest information about the world of crypto and blockchain technology. Check today‘ s bitcoin price, today’s solana price, pepe coin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Conclusion

From agricultural fields to blockchain, futures contracts have become an important instrument for risk management and speculation. Understanding commodity futures is not only useful for commodity market participants, but also paves the way for understanding and utilizing crypto futures.

With the advent of platforms like Pintu Futures, anyone can now utilize this instrument to seize opportunities in a dynamic market. It’s time to upgrade your trading strategy and utilize the futures feature wisely!

*Disclaimer

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