This market is an auction market in which participants buy and sell commodities and/or futures contracts. They buy and sell on a specified upcoming date. In other words this market requires a financial contract that obligates a buyer to purchase an asset and a seller to sell an asset at as a financial instrument or physical commodity at a predetermined upcoming date and price. Some contacts may call for the physical delivery of the asset, while other contracts are settled in cash. In fact, the likelihood of physical delivery of a commodity is extremely low.
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