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Oats Futures Trading Basics
Oats futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of oats (eg. 5000 bushels) at a predetermined price on a future delivery date.
Oats Futures Exchanges
You can trade Oats futures at Chicago Board of Trade (CBOT).
CBOT Oats futures prices are quoted in dollars and cents per bushel and are traded in lot sizes of 5000 bushels (86 metric tons).
| Exchange & Product Name | Symbol | Contract Size | Initial Margin |
| CBOT Oats Futures (Price Quotes) | O | 5000 bushels (Full Contract Spec) | USD 1,350 (approx. 13%) (Latest Margin Info) |
Oats Futures Trading
Consumers and producers of oats can manage oats price risk by purchasing and selling oats futures. Oats producers can employ a short hedge to lock in a selling price for the oats they produce while businesses that require oats can utilize a long hedge to secure a purchase price for the commodity they need.
Oats futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable oats price movement. Speculators buy oats futures when they believe that oats prices will go up. Conversely, they will sell oats futures when they think that oats prices will fall.
Related Articles
- Buying Oats Futures to Profit from a Rise in Oats Prices
- Selling Oats Futures to Profit from a Fall in Oats Prices
- Oats Options Basics
- Oats Call Option Trading Basics
- Oats Put Option Trading Basics
- Hedging Against Rising Oats Prices with Oats Futures
- Hedging Against Falling Oats Prices with Oats Futures
How to Start Trading Oats Futures
To buy or sell oats futures, you need to open a trading account with a broker that handles futures trades. Most online brokerages out there only deal with stocks and stock options. Only a few such as optionsXpress lets you trade futures and futures options as well. optionsXpress also provide a virtual trading platform where beginners can try out futures and options trading in real market conditions without using real money.
