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  1. #1
    Rookie Member

    Do You Know Basics Of Commodity Trading? !!!

    Investments in equity or debt are fairly common practices in the financial markets. However, it is the investment in commodity markets that has seen a significant rise in the past decade. This sophisticated form of investing adds a whole new dimension to markets. While it can fairly diversify your portfolio, its volatility and risks are relatively higher. Commodity trading provides an ideal asset allocation and helps to hedge against inflation. The growing investors keenness towards commodity trading has prompted us to write this article on the basics of the same.

    A commodity is a product that is found naturally or is grown. It is usually a generic, largely unprocessed, good that can be processed and resold. These goods and products include various foods, precious and industrial metals, livestock, as well as fuels that are exchanged and traded on the financial markets. For example: gold, crude oil, cattle, lumber, wheat, cotton, sugar, etc are all commodities. Undeniably, commodities play a prominent role in our day-to-day lives and therefore, forms substantial part of national and international marketplace. So commodity markets are nothing but markets where such commodities are traded on exchanges, where prices are based on supply and demand. It is similar to stock trading but instead of buying and selling shares of companies, investor buy and sells commodities in per-specified standardized contracts.


    Stock Tips | Intraday Tips | MCX Tips
    Last edited by avamorcle; 03-26-2013 at 12:37 PM.

  2. #2
    Moderator Kolyo's Avatar
    Hi, avamorcle and welcome! Check out our community trading rules. If you read them carefully you will find that we allow posting links to personal and promotion websites only on Introduce your Binary Options Businesses Room. In all other threads it is not allowed.

  3. #3
    Senior Member raymond09's Avatar
    Their are mainly two types of commodities including soft commodities like sugar, cocoa, coffee etc. These types of commodities are primarily affected by price with a little effect from cultural factors as well. The supply for these types of commodities can be most affected by weather, soil, transportation and even insects.

  4. #4
    Rookie Member

    How To Make Money With Commodity Trading Tips !!!

    Commodity market is that the place wherever completely different materials square measure listed in terribly massive amount. It includes the materials as Agriculture product like Crude oil, Cashew, Caster Seed, Cotton Seed Oilcake, etc. and in Metals like Electrolytic Copper Cathode, atomic number 13 except for these metals it conjointly involve the energy product like gas and fossil oil, etc. however so as to obtaining large advantages together with your investment available trade is absolutely important for you to having the Crude tips and goods tips whereas finance cash during this market.

    Though, goods market is taken jointly of the risky one within the share market world however one factor that created it initial in alternative is that so as to finance a lot of and earning most profit solely goods market is that the best for you. additionally, Crude tips and goods Tips provided by the share informatory company Share Tips professional cause you to certain regarding your investment call.

    Commodity Tips | Option Tips

  5. #5
    Legendry Member willyw's Avatar
    Quote Originally Posted by avamorcle View Post
    Commodity market is that the place wherever completely different materials square measure listed in terribly massive amount. It includes the materials as Agriculture product like Crude oil, Cashew, Caster Seed, Cotton Seed Oilcake, etc. and in Metals like Electrolytic Copper Cathode, atomic number 13 except for these metals it conjointly involve the energy product like gas and fossil oil, etc. however so as to obtaining large advantages together with your investment available trade is absolutely important for you to having the Crude tips and goods tips whereas finance cash during this market.

    Though, goods market is taken jointly of the risky one within the share market world however one factor that created it initial in alternative is that so as to finance a lot of and earning most profit solely goods market is that the best for you. additionally, Crude tips and goods Tips provided by the share informatory company Share Tips professional cause you to certain regarding your investment call.

    Commodity Tips | Option Tips
    avamorcle, in your post you did not mention any tips how make money in commodity trading but WHAT IS COMMODITY.
    I started commodities in the 1980s for several years before switching to forex. I first started with Japanese commodities, then Philippines, Hong Kong then to the London and finally to U.S markets.
    Commodity trading is also know as futures trading where delivery date is set by the exchange at a future date. Each futures contract has a delivery date.There are two type of commodities, hard and soft. Hard commodities are metals and soft are agriculture, currencies, stock indices which also include crude oil, etc. Trading of futures or commodities depend mainly on supply and demand, weather factor and also economic and political factor. For Japanese, Hong Kong & Philippines commodities, traders trade the furthest month contract (last contract month) prior to the spot month(delivery month). For Europe markets, like London & US markets traders trade the 2nd spot month. For small investors, they place their orders through brokerage company and big investors who places big lots are able to get floor quote, ie they trade directly through a representative on the trading floor. When trading in futures, and investor could not liquidate their position will usually leave their position overnight and hold long term. And when the contract is near to delivery date and become the spot, the investor if buying will require to pay full value of the contract to take delivery of the commodity or if selling have to deliver full value to the buyer. Or if investor is a speculator their position will be carry-over to the next future month and investor will have to bear the difference in contract price.

  6. #6
    Veteran Member uj.forex's Avatar
    Commodity trading has a few factors that we must understand and remember all the time....

    1 - ALWAYS focus MORE on the FUNDAMENTAL data.... the supply and demand... and other factors from the area of production or supply to the areas where there is demand...

    2 - NATURAL factors including disasters or any such good recovery is important too...

    3 - Technicals work, but the fundamentals do Not respect the technicals as they SOMETIMES do in FOREX....

  7. #7
    Veteran Member Ammeo's Avatar
    Commodities (especially agriculture) can be an year after year profitable investment opportunity cause their future value is much easily predictable if one can have a better knowledge of current and upcoming weather conditions and the current yield of agriculture products gained form the fields. I know someone who makes consistent profits years after years trading the agricultural commodities. It is possible if one can get experienced with this niche and knows the ins and outs of how different affects like weather conditions,production,taxes on farmers, demand and supply of food stuff etc works...

  8. #8
    Solid Member
    I am newbie here and new to investment market. From my little experience I think, Commodities feed the world, build our homes, make our technology work, and allow you to read this today. Without commodities the world as you know it would not exist. Due to the extent and gross value of the various types, commodities are one of the worlds most traded financial instruments.

  9. #9
    Active Member rockettrader's Avatar
    Hi, crimson69! Commodities are really a great element of our everyday life and also they are physically traded with real delivery not like stocks and forex only virtually. Trading commodities have specific characteristics and pitfalls and it is not easier than stocks or forex, but if you learn it you will see that there are a lot of high probability opportunities there.

  10. #10
    Rookie Member
    Okay! I'll never share tips on commodity trading again.

    Quote Originally Posted by Kolyo View Post
    Hi, avamorcle and welcome! Check out our community trading rules. If you read them carefully you will find that we allow posting links to personal and promotion websites only on Introduce your Binary Options Businesses Room. In all other threads it is not allowed.

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