There may be instances
where you would have heard from investors about speculating in futures of
commodity market. We all know about investments in stocks but focusing in
commodity market can have your money make money for you. First and foremost it
is important for you to know the meaning of commodity. The goods where one
portion is same as the other are termed as “Commodities”. Example of commodity
is gold where 1 ounce of gold is the same as next.
External forces such
as shipping costs or changes in composition make differences in some
commodities. For example – if we consider shipping, all oil sells come from
different sources and thus they do not cost the same. Further they are traded
in various markets with different pricing. Spot markets and futures are two
ways of trading commodities.
Trades that take place
literally on the spot are termed as “Spot markets”. Trading of commodity there
and then for cash or some other product is an observation of Spot Trading. This
type of trading can be done in larger volumes. On the other side, futures
trading involves speculating on the future which can be risky and thus you can
expect having huge profits as well as huge losses. Completely new insight into
the whole world of commodity futures trading is possible only if you decide to
start learning to trade commodities. Grow your money with ABans – a leading
stock broker of India.
Founded in 2005, ABans Group has grown from being a trading house
to a dynamic and diversified business group. We provide expertise in Broking
Services, Merchant Banking, Non-Banking Financial Dealings, Jewellery
manufacturing and Realty and Infrastructure. It is a comprehensive Financial
Services and Solution Provider,which aims to provide an end-to-end financial
solution to its clients.
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