A market is conventionally defined as a place where buyers and sellers meet to exchange goods or services for a consideration. This consideration is usually money. In an Information Technology-enabled environment, buyers and sellers from different locations can transact business in an electronic marketplace.

Futures Trading is a form of investment which involves speculating on the price of a commodity going up or down in the future.

A commodity is a product that has commercial value, which can be produced, bought, sold, and consumed. Commodities are basically the products of the primary sector of an economy. The primary sector of an economy is concerned with agriculture and extraction of raw materials such as metals, energy (crude oil, natural gas), etc., which serve as basic inputs for the secondary sector of the economy.

There are two main types of Futures trader: ‘hedgers’ and ‘speculators’.
A hedger is a producer of the commodity (e.g. a farmer, an oil company, a mining company) who trades a futures contract to protect himself from future price changes in his product.
Speculators include independent floor traders and private investors. Usually, they don’t have any connection with the cash commodity and simply try to (a) make a profit buying a futures contract they expect to rise in price or (b) sell a futures contract they expect to fall in price.

A futures trading plan is similar to a stock trading plan; both represent your set of “terms and conditions” for making trades. By establishing your futures trading plan before you enter the market, you can establish rules void of the emotions that will grab you in the heat of the moment. Why is this important? Whether things are going well or poorly, there is a tendency for people to react emotionally. Emotions are a great thing normally, but a poor guide when you are making major money decisions with your investments.