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Investing 101 · Instruments

Commodity futures, explained simply

10 min readUpdated May 2026

Quick primer on commodity futures contracts. What they are, why they exist, how leverage and margin work, and why retail investors usually should not trade them

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What this guide covers

Quick primer on commodity futures contracts. What they are, why they exist, how leverage and margin work, and why retail investors usually should not trade them

This guide is part of the Investing 101 series. Use the navigation below to read related guides, or go to the commodities directory to explore live price data.

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