FUT/FW do not trade in shares like stocks. They trade in contracts. Each FUT/FW contract has a size that has been set up.
For example, the contract size for gold futures is 100 ounces. That means when you are buying 1 contract of gold, you are really controlling 100 ounces of gold. If the price of gold moves $1 higher, that will affect the position by $100($1 x 100 ounces). You need to check each commodity or futures contract since most of them are different.
Example 2 : Buying 25 MW of Cal 2009 Baseload electricity at 61.65€/MWh (last settlement price on 6th Feb 2008, Powernext)
The London Metal Market and Exchange Company was founded in 1877 but the market traces its origins back to 1571 and the opening of the Royal Exchange. At first only Copper was traded, Lead and Zinc were soon added but only gained official trading status in 1920 . The exchange was closed over WW II and did not re-open until 1952. Other metals traded extended to include aluminium (1978), nickel (1979) and aluminium alloy (1992). The exchange also started trading plastics in 2005. The total value of the trade is around $8,500 billion annually.
Contrary to popular belief, the precious metals, gold and silver are not traded on the London Metal Exchange, but on the over-the-counter market usually referred to as the London Bullion Market.
Platinum and palladium are traded on the London Platinum and Palladium Market.
28/04/08 – London Metal Exchange launch steel futures trading.
The London Metal Exchange or LME is the futures exchange with the world's largest market in options and futures contracts on base and other metals. As the LME offers contracts with daily expiry dates up to three months from trade date, along with longer dated contracts, it also allows for cash trading. It offers hedging, worldwide reference pricing and the option of physical delivery to settle contracts.
Commodities have the same premise as any other investment – you want to buy low and sell high. The difference with commodities is that they are highly leveraged and they trade in contract sizes instead of shares.
Quite often, innovations on commodity derivatives markets come from financial markets… without taking into account some specificities of commodity markets. A large part of Quantitative Framework derives from Fx Rates
Physical delivery ,Theory of storage Transport & Convenience Yield
There is room for people :
Taking into account economical and / or technical constraints
Having skills for the exploitation of low quality data