What is title transfer in crude oil future...

We would like to inform you that forwards and futures contracts are basically agreements that allow traders, investors and commodity producers to guess the future price of an asset. These contracts work as a two-party commitment that enables the instrument to be traded on a future date (the expiration date) at the agreed price at the moment the contract is created.
The primary financial instrument of a future contract can be any asset such as equity, commodity, currency, interest payment, or even a bond.
However, unlike forward contracts, futures contracts are unified from the perspective of the contract (as legal agreements) and are traded in specific locations (futures trading platforms). Therefore, future contracts are subject to a certain set of rules, which may include, for example: contract size and daily interest rates. In many cases, the implementation of futures contracts is guaranteed by the clearing house, allowing the parties to trade with less risk. There are three main measures that futures traders can take after taking the futures position:
Budget: Refers to the movement in the position of the futures contract by creating a counter transaction with the same value. That is, if a trader wants to speculate on 50 futures contracts, he can open a long position of the same size equal to the position of the first. The budget strategy allows traders to realize their profits or losses before the settlement date.
Renewal: occurs when a trader decides to open a new forwards position after balancing its initial position, which extends the expiration date.
For example, if a trader is long on 30 forwards contracts that expire in the first week of January but want to extend a focused position for six months, he can offset the first position and open a new contract of the same size with expiration in the first week of July.
Settlement: If a forwards trader does not balance or renew his position, the contract will be settled on the expiration date. At this point, the parties involved are legally obligated to exchange their assets (or cash) according to their position.