For example, if underlying hedge funds were to purchase financial futures contracts for speculative versus hedging purposes, which is common, pension investment restrictions may be violated.

FORBES: Pensions Perilously Binging Upon Hedge Funds, Funds of Funds and Funds of Funds of Funds (March 20, 2007)

These are often more difficult to trade, especially when part of the job requires securing and creating baskets of the actual underlying stocks, bonds, preferreds, currencies and futures.

FORBES: The Godfather Of ETFs

Reilly thinks the ETF is a disaster for the investors picking up the tab because it buys futures in a bid to track a thin underlying market.

FORBES: How To Avoid ETF Pitfalls

Meantime, Nymex crude oil futures prices are lower early Wednesday, which is a bearish underlying factor for the raw commodity sector on this day.

FORBES: A.M. Kitco Metals Roundup: Comex Gold Weaker On Chart Consolidation, Profit Taking; FOMC Statement On Deck

An option on a futures contract is the right, but not the obligation, to buy or sell the underlying security at a particular price within a specific time.

FORBES: METALS OUTLOOK: Gold Eyeing Support At $1,636/Oz