Speculation not harmful in commodity trading
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zebulen Apprentice
Joined: 25 May 2006 Posts: 5
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Posted: 07/21/08 - 07:44 Post subject: |
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| 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
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Posted: 08/20/08 - 01:24 Post subject: |
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| 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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