Quote:
Originally Posted by Andrewunknown
Rhodytrader is right on - the only thing to add is that you buy or sell contracts. These contracts put the holder under obligation to buy or sell a specific quantity of a commodity when the contract settles. Most who trade futures (for any class of instrument, not just commodities) cover their positions shortly after opening them, often during the same session, other than those involved in farming who have reason to use futures contracts, holding them for delivery to lock in specific price for sale or purchase of corn, or soybeans or whatever. So, if you go long on a contract, you'd flatten your position by selling; and if you were to short (sell), vice-versa.
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If we're going into specific here then when trading futures you don't buy or sell anything unless you actually go through the delivery process at expiration. Just like in forex, you go long or short, but never actually take possession of anything.