Commodity Trading

What Is Commodity Trading?

              Commodities are an important aspect of most American's daily life. A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Traditional examples of commodities include grains, gold, beef, oil, and natural gas. For investors, commodities can be an important way to diversify their portfolios beyond traditional securities. Because the prices of commodities tend to move in opposition to stocks, some investors also rely on commodities during periods of market volatility.

              In the past, commodities trading required significant amounts of time, money, and expertise, and was primarily limited to professional traders. Today, there are more options for participating in the commodity markets.

KEY TAKEAWAYS

  • Introduction to commodity markets.
  • Demand and Supply factors.
  • Commodity and Bonds connection.
  • Commodity and Equity markets.
  • Commodity news and analysis.
  • Precious metals – gold and silver.
  • Base metals – copper, nickel, zinc, nickel.
  • Energy materials – crude oil, natural gas.
  • Specifications of commodity futures.
  • Lot size, expiry, margins etc.
  • How to analyze commodity using charts.
  • Order placement in commodity trading.
Commodity Market
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