A derivative is:

(1)the sale of a promise solely to deliver a commodity at a date in the future for an agreed price, i.e. a forward contract. This is a commodity derivative;

(2)the sale of a promise either to deliver a commodity or to pay its value in the future for an agreed price, i.e. a futures contract. This may be either a commodity derivative or a financial derivative;

(3)the sale of a promise solely to pay at a future date a sum of money, calculated by reference to a fixed amount (K) and a variable amount (ST), i.e. a contract for differences. This is a financial derivative.

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