This is the simplest strategy and involves a directional trade. There are only two options:

1. Buying (Going Long) to profit from an expected price increase:
Someone expecting the price of a particular commodity or item to increase over a given period of time can seek to profit by buying futures contracts. If correct in forecasting the direction and timing of the price change, the futures contract can later be sold for the higher price, thereby yielding a profit. If the price declines rather than increases, the trade will result in a loss. Because of leverage, the gain or loss may be greater than the initial margin deposit.

2. Selling (Going Short) to profit from an expected price decline:
However, someone expecting the price of a particular commodity to fall would do just the opposite, though the concept is almost identical. The only way going short to profit from an expected price decline differs from going long to profit from an expected price increase is the sequence of the trades. Instead of first buying a futures contract, you first sell a futures contract. If, as expected, the price declines, a profit can be realized by later purchasing an offsetting futures contract at the lower price. The gain per unit will be the amount by which the purchase price is below the earlier selling price.