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The time now is 11/02/08 - 22:15

Speculation not harmful in commodity trading


RealCool.BIZ Forum Index -> Investments & Trading -> Commodities

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zebulen
Apprentice


Joined: 25 May 2006
Posts: 5



PostPosted: 07/21/08 - 07:44    Post subject: Reply with quote

Good morning people. Couple of days ago, I read some article about speculation which is not harmful in commodity trading. Now, I know for security trading, but not about this other type of trade. Can you tell me something more about commodity trading? Thank you for the posts. I appreciate it.
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currie
Apprentice


Joined: 12 Jun 2006
Posts: 4



PostPosted: 08/20/08 - 01:24    Post subject: Reply with quote

Hello hello. Well, commodity markets are pretty much the same as financial markets. The only difference is object of trade. On the commodity markets, object of trade is commodity, which means raw materials such as agricultural products, metals and similar things. Pricing is also dependable on supply and demand and there are many derivatives as well. For example, you have future contracts on commodity market. Spot trading and forward contracts are also present. Interesting fact is that there are many new products such as weather trading and emissions trading. Well, that would be all from me. I hope that you will find this post useful. All the best!
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