All futures contracts are usually for the purpose of speculation or hedging. As such, general procedure for the settlement, the neutralization of the original contract by a contract from the front on the solution, so the only difference between the current and the contract is paid or received. It is rare that the actual delivery of the goods taken, and paid the price in the settlement of futures contracts.
Futures trading is the most remarkable feature of the business in the commodity market. In fact, commodity exchanges are organized mainly for futures contracts. Speculation and hedging: Futures contracts are for two different purposes. Accordingly, these contracts are either speculative or hedging. The speculation is an important part of the commodity exchanges that trade in goods are sometimes referred to as the speculative market.
All the speculation is an attempt to spy on the person far in the future outside of this window. Speculation refers to an attempt to estimate the future development of prices and rise on this basis to give profit. Commodities can be bought at current prices with the way the sale at a higher price in the future, or vice versa.
On the surface the two seem to be the same, but the speculation in fact refers to the legitimate access to the corporate network (purchase or sale of goods, commodities, etc.) based on an analysis of market trends and other factors affecting prices. However, if the people speculating recklessly and blindly, without applying his mind and intelligence, and the resources necessary to meet to begin their commitments, which degenerates into pure gambling.