Learn Commodity Trading
By: www.CandleStickForums.com
To learn commodity trading,
consider Commodity and Futures
Training. In Commodity and
Futures Training you will learn the
...
To learn commodity trading you
will want to understand why
traders trade and how they do it.
By: www.CandleStickForums.com
The point of trading commodities
futures or futures options is to
make money but that means
effective handling of investme...
Learning fundamental analysis and
technical analysis of the
commodities market are both
essential for successful trading.
...
Both agricultural and industrial
commodities are traded in their
unprocessed state. Wheat is traded
but not bread or flour...
A traded commodity is something
that varies in price over time.
Otherwise there is no point in
trading it.
By: www.CandleS...
Although trading of commodities
takes place at the Chicago Board of
Trade and the New York
Mercantile Exchange traders can...
Commodity trading is in
commodity futures. There are two
basic types of traders. Many
commodity producers trade in
order t...
Agricultural cooperatives, mining
operations, and large food
processing corporations commonly
buy and sell commodity futur...
For example, a gold mining
company may contract to sell half
of its expected production of gold
bullion at $1,000 an ounce...
This guarantees that, should the
gold market collapse, the company
will still have a profit on part of its
production. Tra...
The addition of those who simply
trade the commodities markets but
are not buyers or producers of
commodities adds liquidi...
There are two ways to go when you
begin to learn commodity trading.
The first is to buy and sell futures
and the second is...
Futures trading is promising to buy
or to sell wheat, live cattle, or gold
bullion on the contract expiration
date. The al...
As in all options trading buyers of
options contracts purchase the
right to buy or sell but not the
obligation. You may wa...
Don’t worry. First of all no one will
come to your house and dump
refined copper on your lawn.
However, if you do not exit...
You will also need to pay or deliver
the commodity.
Fortunately, options exchange will
notify all holders of contracts on
...
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Learn Commodity Trading

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Learn Commodity Trading

To learn commodity trading, consider Commodity and Futures Training. In Commodity and Futures Training you will learn the types of commodities that can be traded, how futures contracts are set up, and how prices for futures are arrived at. To learn commodity trading you will want to understand why traders trade and how they do it. The point of trading commodities futures or futures options is to make money but that means effective handling of investment risk as well as scouting out commodity trading opportunities. Learning fundamental analysis and technical analysis of the commodities market are both essential for successful trading.

Both agricultural and industrial commodities are traded in their unprocessed state. Wheat is traded but not bread or flour. Gold bullion is traded but not rings and bracelets. A traded commodity is something that varies in price over time. Otherwise there is no point in trading it. Although trading of commodities takes place at the Chicago Board of Trade and the New York Mercantile Exchange traders can access these markets trading online.

Commodity trading is in commodity futures. There are two basic types of traders. Many commodity producers trade in order to hedge their risk. Agricultural cooperatives, mining operations, and large food processing corporations commonly buy and sell commodity futures. For example, a gold mining company may contract to sell half of its expected production of gold bullion at $1,000 an ounce next year even though the current spot price is closer to $1,100 an ounce. This guarantees that, should the gold market collapse, the company will still have a profit on part of its production. Traders who are not hedging on commodities are speculating on commodity prices. The addition of those who simply trade the commodities markets but are not buyers or producers of commodities adds liquidity to the markets by increasing trading volume.

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Learn Commodity Trading

  1. 1. Learn Commodity Trading By: www.CandleStickForums.com
  2. 2. To learn commodity trading, consider Commodity and Futures Training. In Commodity and Futures Training you will learn the types of commodities that can be traded, how futures contracts are set up, and how prices for futures are arrived at. By: www.CandleStickForums.com
  3. 3. To learn commodity trading you will want to understand why traders trade and how they do it. By: www.CandleStickForums.com
  4. 4. The point of trading commodities futures or futures options is to make money but that means effective handling of investment risk as well as scouting out commodity trading opportunities. By: www.CandleStickForums.com
  5. 5. Learning fundamental analysis and technical analysis of the commodities market are both essential for successful trading. By: www.CandleStickForums.com
  6. 6. Both agricultural and industrial commodities are traded in their unprocessed state. Wheat is traded but not bread or flour. Gold bullion is traded but not rings and bracelets. By: www.CandleStickForums.com
  7. 7. A traded commodity is something that varies in price over time. Otherwise there is no point in trading it. By: www.CandleStickForums.com
  8. 8. Although trading of commodities takes place at the Chicago Board of Trade and the New York Mercantile Exchange traders can access these markets trading online. By: www.CandleStickForums.com
  9. 9. Commodity trading is in commodity futures. There are two basic types of traders. Many commodity producers trade in order to hedge their risk. By: www.CandleStickForums.com
  10. 10. Agricultural cooperatives, mining operations, and large food processing corporations commonly buy and sell commodity futures. By: www.CandleStickForums.com
  11. 11. For example, a gold mining company may contract to sell half of its expected production of gold bullion at $1,000 an ounce next year even though the current spot price is closer to $1,100 an ounce. By: www.CandleStickForums.com
  12. 12. This guarantees that, should the gold market collapse, the company will still have a profit on part of its production. Traders who are not hedging on commodities are speculating on commodity prices. By: www.CandleStickForums.com
  13. 13. The addition of those who simply trade the commodities markets but are not buyers or producers of commodities adds liquidity to the markets by increasing trading volume. By: www.CandleStickForums.com
  14. 14. There are two ways to go when you begin to learn commodity trading. The first is to buy and sell futures and the second is to learn commodity trading as options trading in commodity futures. By: www.CandleStickForums.com
  15. 15. Futures trading is promising to buy or to sell wheat, live cattle, or gold bullion on the contract expiration date. The alternative to buying and selling futures is buying calls, selling calls, buying puts, or selling puts on futures contracts. By: www.CandleStickForums.com
  16. 16. As in all options trading buyers of options contracts purchase the right to buy or sell but not the obligation. You may want to learn commodity trading but you probably do not want to take delivery of a few tons of refined metal or a herd of cattle. By: www.CandleStickForums.com
  17. 17. Don’t worry. First of all no one will come to your house and dump refined copper on your lawn. However, if you do not exit your contract before expiration you will receive notice of where to deliver or where to pick up your commodity. By: www.CandleStickForums.com
  18. 18. You will also need to pay or deliver the commodity. Fortunately, options exchange will notify all holders of contracts on the day before expiration that there is one day left. The vast majority of traders exit their contracts at that time. By: www.CandleStickForums.com

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