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What is a futures contract?

According to IRS publication 550 pages 50 and 51:

A commodity futures contract is a standardized, exchange-traded contract for the sale or purchase of a fixed amount of a commodity at a futures date for a fixed price. If the contract is a regulated futures contract, the rules described under Section 1256 contracts marked to market apply to it. The termination of a commodity futures contract generally results in capital gain or loss.

Learn More... What is a Section 1256 Contract

 

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