: To ensure both parties follow through, the exchange requires them to put down margin —a small fraction of the total contract value (e.g., $50 for a micro contract vs. $500 for standard). This acts as a security deposit, not the total cost.
: Alex is "short" (he promised to sell at $1.10). Since the price is now $1.50, he is facing a loss. how to buy commodity futures
Basics of Futures Trading * A commodity futures contract is an agreement to buy or sell a particular commodity at a future date. * Commodity Futures Trading Commission | CFTC (.gov) How To Invest In Commodity Futures - SmartAsset : To ensure both parties follow through, the