Commodity futures and options are more recent when compared to equity futures and options. They are also the lesser understood by the layman compared to their counterparts. But what people should realize is that commodity trading involves less risk compared to stock futures and options. This is because commodities involve an underlying that are essential to the existence of human beings. Take for example grain based commodity. The price of grains, say wheat, is based on demand and supply of grains. It is very rare that wheat price will become zero or close to zero because people will not stop eating wheat. Hence, the price volatility of such commodities is in a bound range that is around the current price. Equity futures on the other hand is based on a particular company which may involve internal management frauds, product launches that totally fail or just the fact that the company can be bankrupt for any reason. Hence the likelihood of prices of equity futures becoming near zero is higher. Commodity trading risks are in line with stock index futures, which eliminates the beta risk of stocks and maintains the overall market risk in general.