Commodities Trading Basics

Commodities Trading Basics

Intro to Commodities - Part I
Intro to Commodities - Part I Why aren't paintings commodities? Because each one is unique. Commodities are uniform and one individual or portion serves the same purpose as any other. An ounce of...
Intro to Commodities - Part II
Intro to Commodities - Part II Let's examine a highly simplified commodities future contract trade. Suppose a trader buys a contract to purchase oil trading on NYMEX (The New York Mercantile...
Basic Risk Management - Hedging
Basic Risk Management - Hedging Two different motives compel commodities traders: speculation and hedging. They're not mutually exclusive - one can do both at the same time - but speculation is...
Basic Risk Management - Order Types
Basic Risk Management - Order Types It's common knowledge that in trading commodities, like any other kind of speculating, there are no guarantees. You can make money, or lose money - a lot, and...
Commodities In Your Portfolio
Commodities In Your Portfolio For over thirty years - roughly 1974-2004 - the S&P 500 trended upward, with the CRB (Commodity Research Bureau) trending down. The CRB is analogous to the Dow Jones...
Commodity Exchanges
Commodity Exchanges There are more than a dozen major commodity exchanges around the world, reflecting the global nature of speculation today. The Chicago Board of Trade (CBOT, http://www.cbot.com)...