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<p>[QUOTE=&quot;desertgem, post: 1534433, member: 15199&quot;]When you invest in the futures market, you must have a broker who will process the orders for you. This requires a margin account, as you will be buying a contract basically on credit as it can go up or down before expiration, and they want protection if it goes down. If you buy a physical contract for delivery or decide to convert a non-delivery contract to delivery, the full amount for the delivery is due. ( Lots of copper <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /> and expense of delivery, etc.). If you don&#039;t go physical, you can sell the contract at or before expiration. Since there are usually about the same betting it will go down (puts) as going up ( calls) the gainers will equal the losers. Margin increase/decreases can change due to volatility , so one may have to give more to the broker to hold.</p><p><br /></p><p>The ETF, you buy shares, which are priced slightly from the spot price of the underlying due to the ETF absorbing the fees of the exchange. You can buy them outright from a stock broker and hold up or down like the Futures, except with the futures there is an expiration date, the ETF stock, no. You can get options on the ETF and lower your amount paid due to leverage , which is good if the commodity goes up , and can lose all if the commodity goes down for a call option, and reverse for a put option. If one is sure about the future of a commodity, they can make a lot of money with little in, but most lose money in truth with any of these.</p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>

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