Commodities are
related to food, energy or metals and are important part of everyday life. High
crude oil prices impact anyone who drives a car while drought on the soybean
supply impacts people who eat. Commodities traditionally move in opposition to
stocks. Investing in commodities require time, money, expertise and thus
average investor do not take part in commodity trading. Some of the routes to
commodity market are so easy that even a non-professional trader can
participate.
Dealing in
commodities is far older than dealing in stocks and bonds. Commodity trading is
an essential business and agreed-upon standards are required in exchanges with
respect to commodity trading so that trades can be executed. Commodity markets
work on basic economic principles of supply and demand. Significant
manufacturing players like India and China has contributed to declining
availability of industrial metals such as steel for the rest of the world.
Tradeable
commodities fall in four categories:
a)
Metals – Gold, Silver, Platinum and Copper
b)
Energy – Crude Oil, Heating Oil, Gasoline and Natural Gas
c)
Livestock and Meat – Live Cattle, Feeder Cattle, Pork Bellies
d)
Agricultural –Corn, Soybeans, Wheat, Rice, Coffee, Cotton and Sugar
Futures Contract is a popular way to
invest in commodities and it is an agreement to buy or sell in the future, a
specific quantity of commodity at a specific price. Two types of investors
participate in the futures market: speculators and institutional or commercial
users of commodities. You will have to open up a new brokerage account for
investing in a commodity futures contract.
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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