How Long Hedging and Short Hedging Works in Futures Trading

Futures trading is used every day by people who are looking to buy and sell different kinds of commodities, such as corn, gold, wheat, lumber, and many others. People trade these commodities in an attempt to make a profit by buying low and selling high. Rarely ever do the people have a physical hold on the commodities. Instead, the commodities are represented by a simple piece of paper called a futures contract.