Multiple facets and trends in trading of commodities

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Do you believe that gold or crude oil prices will increase further? Are you sure that silver or platinum prices are going to plummet? Are you aware of the fact that the soya crop in this year is bad and will lead to an upward movement of the soya prices?

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Multiple facets and trends in trading of commodities

  1. 1. Multiple facets and trends in trading of commodities
  2. 2. Do you believe that gold or crude oil prices will increase further? Are you sure that silver or platinum prices are going to plummet? Are you aware of the fact that the soya crop in this year is bad and will lead to an upward movement of the soya prices? There are many questions and predictions like this.
  3. 3. If you consider that these speculations have a great chance of coming true and you are eager to bet some money on these, you must try your hand at playing the market of commodity trading.
  4. 4. For decades, commodity trading has been an important part and parcel of the economic structure of a nation. Market participants or players, predominantly hedgers, speculators and arbitrageurs, assist in well-organized price-risk management.
  5. 5. • Commodity trading are not diverse from trading in stocks or even forex. • Speculators act as an essential link in the market. • They can function only because anyone else is hedging their risk. • Speculation does not signify gambling. • Speculators are key market players who instill liquidity and aid hedgers to transfer risk.
  6. 6. • Choices for traders in commodity trading encompass four categories of commodities which contain: • Precious metals comprising silver, platinum, gold, lead and copper; • Agricultural produce like corn, rice, spices, wheat, coffee, cocoa, soybeans, sugar and cotton; • Meat and livestock like live cattle and feeder cattle; • And the essential category of energy which are always in the news including crude oil, gasoline and bio fuel.
  7. 7. • Fundamental economic opinions usually propel the commodity trading in markets: higher supply means lower prices and vice versa. • For instance, investors can pursue strictly the statistics, data and patterns in agricultural produce and livestock.
  8. 8. • Major interruptions in supply, weather conditions and prevalent health alarms can trigger the investing fluctuations. • Still the livestock and demand for agro products is normally consistent and measurable.
  9. 9. • Commodity trading is unpredictable in nature. • Truly speaking, investment in specific commodities can be a totally risky scheme, if any trader is not a hard-core investor without the essential assiduousness and enthusiasm. • Some commodity trading such as dealing in metals are more rational in nature.
  10. 10. • Bearish market usually finds terrified individuals trying to transfer their funds to the precious metals like silver, lead and gold, these have been perceived as the steady metals with a conveyable value. • Investors plunking down money in the stock markets can compensate with great returns by commodity trading in metals. • Metals are employed as a hedge in the occasion of high inflation or stages of currency devaluation. For more information visit: vestatrader.com

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