Basic Commodity Information              By   www.CandlestickForums.com
If you are interested in tradingcommodities you will need some basic  commodity information and then  Commodity and Future...
Commodities are traded  on commodities marketssuch as theNew York Mercantile Exchange and theChicago Board of trade, both ...
Traded commodities include agriculture   products, fossil fuels, metals, and        financial instruments.      www.Candle...
Commodity futures trading allows  commodity producers and buyers tohedge their positions and allows traders    to speculat...
Starting with basic commodity information traders can use technicalanalysis tools such as Candlestick chart    analysis to...
Marketswww.CandlestickForums.com
Commodity trading takes place on a  formal commodity market wherecommodities are traded in standard lot               size...
Traders post a bond in order to tradeand pay fees for the privilege. In general traders buy and sell futures contracts.   ...
These contracts specify that one  individual will buy and one will sell aspecific quantity of the commodity on a          ...
Traders can alsotrade options on commodity futures. Options trading ofcommodities offers the option to buy or sell but not...
An individual buying calls or buyingputs on commodities incurs the cost ofthe premium but does not lock himselfor herself ...
Commoditieswww.CandlestickForums.com
Commodities that are traded are ones     that tend to vary in price. Basic commodity information is that withoutprice vari...
Grain, dairy products, livestock, forest products, precious metals, industrial   metals, environmental credits andfinancia...
Traders interested in trading a     commodity will want to pick acommodity that they understand as well as one which they ...
Hedging vs. Speculatingwww.CandlestickForums.com
The original purpose of commodities markets going back to rice trading inancient Japan and tulip bulb trading in  Holland ...
It was in the 17th century Japanese rice  markets that Candlestick basics were               developed.      www.Candlesti...
Today commodity producers such asgold mining companies still buy and sellfutures on their commodity in order to guarantee ...
Likewise, buyers of commodities such as  a food processing company that buyscattle may buy futures in order insure a given...
Hedging in this way is a type ofinsurance against financial disaster.    www.CandlestickForums.com
Because of the variance in thecommodity markets traders will   speculate on the market.  www.CandlestickForums.com
You do not need to sell or buy the   commodity in order to trade. Manytraders simply exit their positions shortly   before...
Fundamental vs. Technical Analysis    www.CandlestickForums.com
Taking Commodity and Futures   Training is a wise move if you areinterested in trading commodities. You        will need t...
You will need to choose which tools to    use, such as Candlestick chart  formations, in order to accurately     predict m...
Commodity trading can be quiteprofitable but requires basic commodity  information, training, and discipline.      www.Can...
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Basic Commodity Information

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Basic Commodity Information

If you are interested in trading commodities you will need some basic commodity information and then Commodity and Futures Training. Commodities are traded on commodities marketssuch as the New York Mercantile Exchange and the Chicago Board of trade, both part of the COMEX group. Traded commodities include agriculture products, fossil fuels, metals, and financial instruments. Commodity futures trading allows commodity producers and buyers to hedge their positions and allows traders to speculate in the commodities markets. Starting with basic commodity information traders can use technical analysis tools such as Candlestick chart analysis to anticipate the futures markets in commodities and earn substantial profits.

Markets

Commodity trading takes place on a formal commodity market where commodities are traded in standard lot sizes. Traders post a bond in order to trade and pay fees for the privilege. In general traders buy and sell futures contracts. These contracts specify that one individual will buy and one will sell a specific quantity of the commodity on a given date. Traders can alsotrade options on commodity futures. Options trading of commodities offers the option to buy or sell but not the obligation, unlike pure futures trading. An individual buying calls or buying puts on commodities incurs the cost of the premium but does not lock himself or herself in to buying or selling copper futures, corn futures, or live cattle.

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Basic Commodity Information

  1. 1. Basic Commodity Information By www.CandlestickForums.com
  2. 2. If you are interested in tradingcommodities you will need some basic commodity information and then Commodity and Futures Training. www.CandlestickForums.com
  3. 3. Commodities are traded on commodities marketssuch as theNew York Mercantile Exchange and theChicago Board of trade, both part of the COMEX group. www.CandlestickForums.com
  4. 4. Traded commodities include agriculture products, fossil fuels, metals, and financial instruments. www.CandlestickForums.com
  5. 5. Commodity futures trading allows commodity producers and buyers tohedge their positions and allows traders to speculate in the commodities markets. www.CandlestickForums.com
  6. 6. Starting with basic commodity information traders can use technicalanalysis tools such as Candlestick chart analysis to anticipate the futures markets in commodities and earn substantial profits. www.CandlestickForums.com
  7. 7. Marketswww.CandlestickForums.com
  8. 8. Commodity trading takes place on a formal commodity market wherecommodities are traded in standard lot sizes. www.CandlestickForums.com
  9. 9. Traders post a bond in order to tradeand pay fees for the privilege. In general traders buy and sell futures contracts. www.CandlestickForums.com
  10. 10. These contracts specify that one individual will buy and one will sell aspecific quantity of the commodity on a given date. www.CandlestickForums.com
  11. 11. Traders can alsotrade options on commodity futures. Options trading ofcommodities offers the option to buy or sell but not the obligation, unlike pure futures trading. www.CandlestickForums.com
  12. 12. An individual buying calls or buyingputs on commodities incurs the cost ofthe premium but does not lock himselfor herself in to buying or selling copper futures, corn futures, or live cattle. www.CandlestickForums.com
  13. 13. Commoditieswww.CandlestickForums.com
  14. 14. Commodities that are traded are ones that tend to vary in price. Basic commodity information is that withoutprice variance there would be no reason to buy or sell futures. www.CandlestickForums.com
  15. 15. Grain, dairy products, livestock, forest products, precious metals, industrial metals, environmental credits andfinancial instruments can all be traded on one commodities exchange or the other. www.CandlestickForums.com
  16. 16. Traders interested in trading a commodity will want to pick acommodity that they understand as well as one which they are willing to track with Candlestick charting techniques. www.CandlestickForums.com
  17. 17. Hedging vs. Speculatingwww.CandlestickForums.com
  18. 18. The original purpose of commodities markets going back to rice trading inancient Japan and tulip bulb trading in Holland was to hedge market risk. www.CandlestickForums.com
  19. 19. It was in the 17th century Japanese rice markets that Candlestick basics were developed. www.CandlestickForums.com
  20. 20. Today commodity producers such asgold mining companies still buy and sellfutures on their commodity in order to guarantee a profit even if the market drops substantially. www.CandlestickForums.com
  21. 21. Likewise, buyers of commodities such as a food processing company that buyscattle may buy futures in order insure a given price just in case the market goes up. www.CandlestickForums.com
  22. 22. Hedging in this way is a type ofinsurance against financial disaster. www.CandlestickForums.com
  23. 23. Because of the variance in thecommodity markets traders will speculate on the market. www.CandlestickForums.com
  24. 24. You do not need to sell or buy the commodity in order to trade. Manytraders simply exit their positions shortly before the contract expiration date. www.CandlestickForums.com
  25. 25. Fundamental vs. Technical Analysis www.CandlestickForums.com
  26. 26. Taking Commodity and Futures Training is a wise move if you areinterested in trading commodities. You will need to understand both fundamental analysis of commodities andtechnical analysis. www.CandlestickForums.com
  27. 27. You will need to choose which tools to use, such as Candlestick chart formations, in order to accurately predict market movements. www.CandlestickForums.com
  28. 28. Commodity trading can be quiteprofitable but requires basic commodity information, training, and discipline. www.CandlestickForums.com

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