| Commodities players usually deals with OTC forward contracts, not futures. The OTC is huge and private, organized through different market makers in the big banks, and all contracts are customized while Futures contracts are organized in a public open market with a clearing house and standards.
OTC Forwards is where oil companies buy and sell their oil when they need to distribute it, futures is where speculators do their arbitrage when they "imagine" things or take financial bets. |