Trading Uranium
Uranium is a commodity which offers a trader a “charged” environment – an experience which is in a class by itself. With a minor price explosion a few years ago, prices settled to the $29 range from the boom at $45. if you thought oil prices are volatile, move over, uranium i ...
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Trading Strategies The Spread
A lot of trading strategies are not just to make more profits. But as a hedge. Hedging is a strategic tool buy which a kind of insurance policy is procured to minimize risks. It goes without saying that the moment you minimize risks, the profits are also under a scan. Let us study one such strategy ...
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Trading Soybean
Soybeans may be a low-interest item in life but in terms of commodities trading, this grain happens to be one of the most potentially profitable and low-risk trades in the market. Soybeans owe its origin to China, where it is grown even today. The grain arrived in the United States ...
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Trading Silver
Among the metal category, silver is a stand-alone item. Private investors can take delivery of this item, as they would do with gold and some other items. But unlike gold, silver is more affordable. Storage is not a big problem and maximum security is within reach with the safe deposit box of ...
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Trading Oil
At a staggering 42 gallons per barrel, clubbed with a minimum contract size of 1000 barrels, trading in oil was, for many decades a game played by the high and mighty of the trading world. The sheer business of delivering oil was limited to thorough professionals. But all that has changed duri ...
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Trading Coffee
It is heartening to deal with a commodity, where you would like to take delivery of the item. After a great downward trend, coffee prices have been seen to rise in the past 2 years. Coffee growers have not yet fully cheered up, by optimism is in the air. The first half of 2006 saw t ...
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Technical Analysis on Expectancy
Fundamental analysis in commodity trading involves factors which affect the overall economy, such as weather forecasts, crop production, new technologies, new-found mines, etc. Rather, which affect supply and demand. On the contrary, when you talk of technical analysis, it primarily deal ...
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Reading Prices
Commodity trading, or confusion confounded ! Much more than buying commodities directly, trading is done by buying and selling futures contracts. While everything matches with the trading of stocks and bonds, the only exception is that futures contracts have an expiry date. even then, some aspe ...
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Margins
When you read newspaper reports that inflation is on the rise, you presume that the trend is likely to continue in the coming two years and hedge your portfolio to make some quick profits by investing in commodities like gold. Bad luck that you don’t have $58000 to invest in 100 troy ounc ...
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Leverage
Commodities are generally traded in the form of futures contract. A fixed amount, a percentage of the asset price is paid and the buyer comes an obligation to deliver or take delivery of a specified amount of goods on a specified future date. Thus the name. Is there any advantage of futures ove ...
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Intro to Commodities Part 2
Let us study a very simplified version of a commodities futures contract trade. Let us presume that a trader purchases a contract to buy oil trading on NYMEX (The New York Mercantile Exchange). He buys it at $70 a barrel for West Texas Intermediate (WTI) which has an expiry date on 6th August. ...
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Funds
There are many types of investors. Some are bold and aggressive irrespective of whether they have enough money to lose or not. There are some who tread very carefully, hoping to make small amounts of money in the long run. And there are some who play a little of both, may be nearer to the cautious t ...
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Fundamental Analysis
Once you study the reasons which affect the demand and supply chain, it can give you an overview of the fundamental analysis. Simplistically speaking, when supply is in excess of demand, prices drop. On the contrary, when demand is in excess of supply, commodity prices rise. The scene is not as simp ...
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Financial Indexes
New investors usually do not think of stocks and bonds as commodities to be traded. Similarly they do not include any measurement of statistical change of price, as they would imagine with wheat, gold or oil. Be that as it may, because stocks and bonds and the corresponding indexes which measure the ...
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Commodity Types
For the sake of making trading more convenient, commodities are grouped together according to categories by which you can compare their prices, movements, etc. If you are an investor wanting to delve into the riskiest zones which is equally profitable, you will need to get familiar with some basics. ...
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Commodity Exchanges
The global span of speculation is evident from the large number of commodity exchanges which operate across the world. Currently there are more than a dozen such exchanges. The Chicago Board of Trade is one such exchange which operate with a large range of commodities – like, corn, soybe ...
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Commodities In Your Portfolio
During 1974 and 2004, that is for nearly 30 years, while the S&P 500 moved higher, the CRB (Commodity Research Bureau) tended to go downwards. The CRB is similar to Dow Jones Index, which is an amalgamation of commodity prices of items like oil, coffee, gold, wheat and many such. With this backd ...
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