Amazines Free Article Archive
www.amazines.com - Sunday, January 17, 2021
Read about the most recent changes and happenings at Amazines.com
Log into your account or register as a new author. Start submitting your articles right now!
Search our database for articles.
Subscribe to receive articles emailed straight to your email account. You may choose multiple categories.
View our newest articles submitted by our authors.
View our most top rated articles rated by our visitors.
* Please note that this is NOT the ARTICLE manager
Add a new EZINE, or manage your EZINE submission.
Add fresh, free web content to your site such as newest articles, web tools, and quotes with a single piece of code!
Home What's New? Submit/Manage Articles Latest Posts Top Rated Article Search
Google
Subscriptions Manage Ezines
CATEGORIES
 Article Archive
 Advertising (133447)
 Advice (161198)
 Affiliate Programs (34758)
 Art and Culture (73753)
 Automotive (145648)
 Blogs (75252)
 Boating (9847)
 Books (17221)
 Buddhism (4128)
 Business (1329060)
 Business News (426393)
 Business Opportunities (366367)
 Camping (10967)
 Career (72761)
 Christianity (15849)
 Collecting (11638)
 Communication (115069)
 Computers (241938)
 Construction (38915)
 Consumer (49684)
 Cooking (17072)
 Copywriting (6664)
 Crafts (18205)
 Cuisine (7545)
 Current Affairs (20420)
 Dating (45890)
 EBooks (19696)
 E-Commerce (48225)
 Education (185320)
 Electronics (83506)
 Email (6407)
 Entertainment (159839)
 Environment (28921)
 Ezine (3039)
 Ezine Publishing (5451)
 Ezine Sites (1550)
 Family & Parenting (110930)
 Fashion & Cosmetics (196430)
 Female Entrepreneurs (11848)
 Feng Shui (131)
 Finance & Investment (310482)
 Fitness (106338)
 Food & Beverages (62924)
 Free Web Resources (7940)
 Gambling (30223)
 Gardening (25154)
 Government (10541)
 Health (629647)
 Hinduism (2206)
 Hobbies (44057)
 Home Business (91585)
 Home Improvement (251097)
 Home Repair (46178)
 Humor (4833)
 Import - Export (5453)
 Insurance (45098)
 Interior Design (29586)
 International Property (3485)
 Internet (191003)
 Internet Marketing (146516)
 Investment (22852)
 Islam (1167)
 Judaism (1356)
 Law (80435)
 Link Popularity (4595)
 Manufacturing (20862)
 Marketing (99040)
 MLM (14136)
 Motivation (18222)
 Music (27013)
 New to the Internet (9496)
 Non-Profit Organizations (4048)
 Online Shopping (129632)
 Organizing (7805)
 Party Ideas (11853)
 Pets (38066)
 Poetry (2234)
 Press Release (12684)
 Public Speaking (5635)
 Publishing (7528)
 Quotes (2407)
 Real Estate (126634)
 Recreation & Leisure (95406)
 Relationships (87680)
 Research (16174)
 Sales (80337)
 Science & Technology (110268)
 Search Engines (23487)
 Self Improvement (153233)
 Seniors (6232)
 Sexuality (35950)
 Small Business (49281)
 Software (83016)
 Spiritual (23469)
 Sports (116098)
 Tax (7659)
 Telecommuting (34067)
 Travel & Tourism (307901)
 UK Property Investment (3121)
 Video Games (13428)
 Web Traffic (11749)
 Website Design (56839)
 Website Promotion (36599)
 World News (1000+)
 Writing (35791)
Author Spotlight
MANMOHAN SINGH

Digital marketing professional with 8 years of experience. A good listner, Stratgist and fun loving ...more
CACEY TAYLOR

Im just a man who likes to be happy and see others happy. Im into home business, sports, family, and...more
ELLISEN WANG

I'm Ellisen, nice to meet you! Obviously you're here because you want to know who I am. Wel...more
AYESHA GULZAR

Medical and Pharmaceutical Research writer Doctor of Pharmacy/Pharm D /RPh ...more
CED YONG

Writer, photographer, and graphic agency owner from Singapore. I'm also a Yamaha Electone player and...more


Commodity Trading Basics You Need to Know by Elliot Chang





Commodity Trading Basics You Need to Know by
Article Posted: 04/16/2020
Article Views: 565
Articles Written: 98
Word Count: 572
Article Votes: 0
AddThis Social Bookmark Button

Commodity Trading Basics You Need to Know


 
Investment,Finance & Investment,Business Opportunities

Commodity trading is one of the most lucrative venture an investor can try. That’s because it offers a lot of benefits. The only thing you need to have is a small amount of capital and the knowledge of the market.

Commodity Basics

To start trading commodities, you should first understand the market’s most basic concepts. What are commodities? What are its different types? How can we trade them?

What are Commodities?

A commodity is a basic good or raw material that commerce participants use. In other words, these commodities are the building blocks of a bigger good or service.

There are a lot of commodities in the market. But you only have to think about four of them when you want to try commodity trading.

They are:

  • Agricultural Commodities (sugar, coffee, cotton, beans)
  • Energy (petroleum, oil, gas)
  • Metals (copper, gold, silver, platinum)
  • Livestock (pork, live cattle, meat)

How are they different?

Apart from their general types, these commodities also differ in terms of liquidity and ease of access.

Some commodities see higher trading volumes than others. Feeder cattle trading, for instance, isn’t as active if you compare it to crude oil trading.

Supply and Demand Drive Prices

Commodity prices primarily move according to supply and demand dynamics.

The supply, on the one hand, moves according to different factors. Such factors include:

  • Government policies
  • Weather
  • War
  • Industry regulations

Government sanctions also affect the supply greatly. For instance, the US may impose sanctions on oil producing countries. Then, the supply would decrease.

Lower supply levels mean a probable increase in price.

On the other hand, demand can also move according to those factors. Consumer habits and the economic health primarily drive the demand.

Ways to Do Commodity Trading

To trade commodities, the most direct way is to buy the commodity itself and wait for prices to go up.

However, it’s also the most impractical, as you would be receiving the delivery of the actual bags, herd, or bars of commodities.

Here are some of easier way to trade commodities.

Commodity Funds

Commodity funds let you expose yourself to commodities without having to buy them directly.

Just like many other types of funds, it offers quick and easy diversity. That’s because a fund may invest in various commodities at once.

Commodities also have historically low correlation to the stock market. As a result, commodity funds serve as good hedge if you have equity holdings too.

Commodity Stocks

You can also find commodity stocks, or companies that deal heavily with commodities. The only downside of this is that when commodity markets experience weakness, these companies also decline.

Commodity Futures

Commodity futures are generally pure play on the underlying commodity. It also gives you the chance to use leverage, which lets you achieve bigger profits even with small movements.

On the other hand, the futures markets can experience high volatility. At the same time, leverage also magnifies your chances of losing even it as increases your possible gains.

Commodity Options

Commodity options let you trade on the stocks of commodity-heavy companies, but with smaller investments than actually buying stocks.

Your risk will only depend on the price of the option. Options on commodity stocks are also typically highly liquid.

The downside is that your earnings or losses potential can change due to company-specific factors. In other words, commodity options aren’t a pure play on commodities.

Related Articles - commodity traders, commodity market, commodity trading,

Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

 Rate This Article  
Completely useless, should be removed from directory.
Minimal useful information.
Decent and informative.
Great article, very informative and helpful.
A 'Must Read'.

 

Do you Agree or Disagree? Have a Comment? POST IT!

 Reader Opinions 
Submit your comments and they will be posted here.
Make this comment or to the Author only:
Name:
Email:
*Your email will NOT be posted. This is for administrative purposes only.
Comments: *Your Comments WILL be posted to the AUTHOR ONLY if you select PRIVATE and to this PUBLIC PAGE if you select PUBLIC, so write accordingly.
 
Please enter the code in the image:



 Author Login 
LOGIN
Register for Author Account

 

Advertiser Login

 

ADVERTISE HERE NOW!
   Limited Time $60 Offer!
   90  Days-1.5 Million Views  

 

Great Paranormal Romance


TIM FAY

I am not a writer nor am I trying to become a writer. I am an average person with average intelligen...more
STEVERT MCKENZIE

Stevert Mckenzie, Travel Enthusiast. ...more
LAURA JEEVES

At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
LINDA DECANN

Linda DeCann is US based pursuing her career as brand ambassador. Previously she has helped hundreds...more
GENE MYERS

Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more
CHRIS BURTON

I am an International Corporate Consultant specialising in the bespoke formation of offshore compani...more
STEPHEN BYE

Steve Bye is currently a fiction writer, who published his first novel, ‘Looking Forward Through The...more
DAMIAN POWELL

Demonstrated exceptional leadership in the government and private sector at an executive level. Skil...more
PAUL RICE

hello everyone l been on the net since 2000 and enjoy my work l work as an affiliate and also have w...more
RENE VALENCIA

My name is Rene I am a Las Vegas nightlife blogger and long time socialite. I currently write for bo...more

HomeLinksAbout UsContact UsTerms of UsePrivacy PolicyFAQResources
Copyright © 2021, All rights reserved.
Some pages may contain portions of text relating to certain topics obtained from wikipedia.org under the GNU FDL license