Commodities Sitemap - Page 1 2016-09-26
Nickel- One of the worst performing commodities of 2015
This article examines the world market in nickel a highly volatile metal that has a multitude of uses. If you carry any change in your pocket or purse chances are you are holding some right now!
Commodities We Consume in Everyday Life
We are all consumers of commodities and have experiences with these staples that we should use in our investment activities.
Precious Metals- Updated Silver-Gold Ratio
The relationship between gold and silver dates back thousands of years. Traders still watch this relationship today. This article was updated on 10/24/15.
What Happens to Commodities When Interest Rates Finally Rise?
Commodities are sensitive to interest rates. When rates rise raw material prices tend to fall and vice versa.
Inverse Relationship Between the Dollar and Commodities
Historically, there is an inverse relationship between the value of the U.S. dollar and commodities prices.
Planting and Harvest Seasons for Soybean Crops
Soybean crops are planted and harvested at different times around the world. The U.S. is the world's largest producer.
How To Start A Commodity Brokerage Firm
Starting your own commodities brokerage firm a risky venture in an asset class that is all about understanding risk.
Ranking of Traded Commodities by Liquidity
Liquidity is a function of volume and open interest. Liquidity is highly important to consider when trading or investing in a commodity market.
How to Profit From Commodities Moving Lower
Selling a commodity is just as simple as buying a commodity. Short positions doubles the chances of success.
Trading Commodities For A Living
Trading commodities for a living is a dream for most new traders, but a dream is a far thing from reality. Are you prepared for such a venture?
The Importance of the Commodities Markets
Commodity exchanges are still important. It is unlikely we would have had as much economic growth in the last 100 years without them.
The Copper Penny Is Worth More Than One Cent
A penny is currently worth more than one cent because of the meltdown value of copper, and could go higher, presenting possible future profits.
How to Open a Commodities Trading Account
Opening a commodities trade account is probably easier than you think, but it is a major financial transaction and you can expect a long process.
The Fuel of the Future: Understanding Natural Gas
Natural gas, one of the cleanest fuels, is a volatile energy commodity. Here's an explanation of why the commodity has a combustible price over time.
What is a Commodity Broker?
A commodity broker typically refers to the person who places commodity trades on behalf of his clients.
Crude Oil and Geopolitics
Oil is a political commodity in that the majority of reserves are in one of the most turbulent regions in the world.
Supply and Demand Information in Different Commodity Sectors
Supply and demand is at the heart of conducting fundamental analysis in commodity markets. Supply tends to be geographically concentrated while demand is ubiquitous.
Natural Gas - Opportunity Below $3
Natural gas at under $3 per mmbtu is historically cheap and there are a number of reasons that the price may appreciate.
Commodity Risk: Physical Risks- Asset/Project Performance and Operating Risks
Physical commodity traders face a myriad of risks. This piece describes two such risks, Asset/Project Performance and Operating Risks.
Commodity Risk- Legal and Liquidity Risk
In the world of commodity trading there are a myriad of risks. Legal and liquidity risk are just two of those risks.
Chinese Economic Weakness and Commodity Prices in 2015
China is the world's largest commodity consumer. A slowdown in China is affecting both commodity prices and the global economic condition.
The article examines and updates two currencies, the Australian and Canadian dollar. Both are highly correlated to movements in the prices of commodities.
The Dollar, Commodity Currencies and Commodity Prices
The volatility in the dollar causes lots of variance in commodities as well as across all asset classes.
Natural Gas - The Energy of the Future
This article outlines natural gas as a commodity and describes the fundamentals and price volatility of the commodity. Updated on October 24, 2015.
Precious Metals: Updated Platinum Group Metals
This article describes PGMs or Platinum Group Metals. These are some of the rarest and most precious metals found on earth. This article was updated on 10/24/15.
Crude Oil: Brent versus WTI
The price differential between Brent and WTI crude oil can be volatile. This article explains the difference and price volatility between them.
Coffee: A volatile year-to-year commodity
This article looks at coffee, where it trades and two types of coffee Arabica and Robusta.
Pork is one of the most widely consumed foods in the world. The article examines lean hog prices, production, consumption and issues that affect price.
Zinc Bearish Price Action Leads To Production Cuts
Zinc is a non-ferrous metal that trades on the LME. Zinc has many uses as a metal and as a medicinal agent. The closure of older mines is creating a shortage that is expected to affect price in 2015.
This article examines commodity options, defines terms and looks at how they differ from options on other assets.
Silver Prices Continue To Fall
Silver is a precious metal with many industrial applications. Silver is far more volatile than gold perhaps that is why it has attracted speculative interest.
EIA and API Reports
Market participants use both technical and fundamental analysis. EIA and API data provide a wealth of fundamental data for the energy markets.
The USDA issues reports on agricultural markets. The most widely watched for report is the monthly WASDE which covers U.S. and international agricultural markets.
Oil Versus Natural Gas: Competing Energy Markets
The price relationship of oil versus natural gas can offer important information as to the supply and demand equation for both commodities.
Volume and Open Interest: Metrics that give clues on commodity price action
Volume and open interest are two technical metrics that help validate price moves in futures markets.
Divergences In The Oil Patch Lead To Opportunity
Analyzing crude oil prices is a science that requires the understanding of many different factors. The ultimate price of oil determined by the sum of these factors.
The Relationship between Gold and the U.S. Dollar
The U.S. dollar is the benchmark pricing mechanism for the price of gold around the world. Strength or weakness in the dollar often affects the price of gold.
Commodities - The Series 3 Exam
The series 3 exam is the first step for many professions entering the world of futures trading and brokering.
Minor Platinum Group Metals- Very Rare With Huge Applications
PGMs or platinum group metals are six elements that have amazing characteristics. Platinum and palladium are only two of these metals, the others are described here.
The Pros and Cons of Speculation in Commodity Futures
Speculators play an important role in commodity markets. While that role is often misunderstood, speculators add liquidity to markets.
Searching for a Commodity Broker
Due diligence is necessary before deciding on a commodity broker once you decide to start trading commodities.
How to Trade Commodities from Home
Many investors don't use commodities as an investment because of misconceptions they have of commodities. Here's how to trade commodities from home.
Creating a Commodity Trading Plan
A Trading Plan is an essential component that must be in place before you begin trading commodities. We will go over the main features of a trading plan and how to create a commodity trading plan.
What is an Introducing Broker
An Introducing Broker (IB) is a commodity or futures broker. The IB has a relationship with the client and all business is passed to an FCM.
Keys to Trading Corn Futures
Trading corn futures can be fairly subdued during the winter months, while the summer months are huge for corn. Watch for exports and demand.
Trading Coffee Futures
Coffee is one of the most interesting yet volatile commodities to trade. Coffee futures can make wide swings within a trading day. Have a trade plan.
Specializing in Trading One Commodity
Some traders make a good living from focusing on trading one commodity. Though there's about 30, here's the case for specializing in one commodity.
The Basics of Trading Crude Oil Futures
Crude oil futures trading is an active and volatile market. Learn about the fundamentals and opportunities for day trading and longer-term investing.
Futures Contracts - Delivery Months
Futures contracts are trading in designated contract months. The contract will expire and the commodity will be delivered or settled.
Trading Commodities with RSI and Momentum Indicators
Momentum and RSI indicators are widely used by commodity traders to measure when a market is overbought or oversold.
Introduction to Commodities and Futures
Learning the meaning of commodities and futures markets and how to make money trading commodities. What are commodities and futures in trading?
Understanding Futures Contracts
Understanding futures contracts will involve learning ticker symbols, futures contracts, contract sizes, delivery months and price quotes.
Ticker Symbols for Futures Contracts
The ticker symbols for futures contracts are used to identify and retrieve quotes, charts and market data for each commodity or futures contract.
Minimum Fluctuation on a Futures Contract - Tick Size
The minimum fluctuation on a futures contract is the smallest move a market can make during a trading day - also called a tick.
Crack spreads represent the economics of processing crude oil into oil products. They are called crack spreads because raw crude is
Should You Trade Futures Contracts or Options?
Futures and options are both derivatives that reflect movement in the underlying commodity. Understand futures and options before using them.
Raw Material Commodities in Brazil
Brazil is an important producer of commodities and their economy depends on raw material revenues.
Understanding a Margin Call in Futures Trading
A margin call occurs when a client with a commodity trading account lacks sufficient fund to cover the required margin to hold an existing position.
- By Category
An index of categories in the
Natural Gas- A Wild and Volatile Ride
Natural gas is a highly combustible commodity and its price is highly volatile. This energy commodity experiences wild price swings at times.
Commodity Options- Butterfly Spreads
Butterfly spreads are an option spread used to position for volatility. The buyer of a butterfly positions for low volatility, the seller looks for a big move in a market.
The Price Of Crude Oil And Equity Prices
Stock indices include many companies involved in the oil industry. Therefore, volatility in the price of crude oil can lead to volatility in equities.
Is Coffee The Next Soft Commodity To Move Big Time?
The price of coffee futures is approaching the lowest level in years. The risk justifies the potential rewards for long positions in the coffee market.
Agricultural Commodities- All Quiet Before the Storm
Each year is a new adventure in the world of agricultural commodity production. 2013-2015 were years of bumper crops. Mother Nature will determine crops for 2016.
The Divergence Between Soybean Meal and Soybean Oil
Processing spreads like the soybean crush spread yield important clues as to the supply and demand for a commodity.
Lower Oil Prices Lower Production Costs For Other Commodities
Crude oil is a key cost of goods sold component in the production of other raw materials.This could mean that many raw material prices could continue to fall.
Ratio Option Spreads- A Play For Soon To Be Volatile Markets
Long ratio option spreads are a way to position for a big market move.
Iron Ore Tells Us A Story About The Chinese Economy
Iron ore is the basic ingredient in steel. The price of iron ore reflects the health of the Chinese economy.
The World Depends On Bumper Grain Crops- An Opportunity
Due to demographic changes the world now relies on bumper crops of grains each year. This creates an opportunity for investors during weak periods for grain prices.
Precious Metals Continue To Lose Their Shine
2015 marked the fourth year of a bear market in precious metals prices. As we head into 2016, there are many reasons that the bear market will continue.
La Nina and Agricultural Commodity Prices in 2016
La Nina has caused droughts in important agricultural growing regions of the United States in past years.
Why Is The U.S. Dollar So Strong And What Does It Mean For Commodity Prices?
The strong dollar is a bearish sign for raw material prices. Numerous factors support the currency of the United States at the beginning of 2016.
The Outlook for Raw Material Prices in 2016
2015 was the fourth year of a commodity bear market that began when prices made highs in 2011, 2016 looks like it may be the fifth year of bearish action.
OPEC Meets- The Cartel Sets The Course of Oil Prices
OPEC, the international oil cartel, met in Vienna on December 4 to determine policy of its member nations for the next six months.
Currencies of Commodity Producing Nations - The Outlook for 2016
The currencies of commodity producing nations are highly dependent on raw material prices.
El Nino and Commodity Markets
El Nino can cause severe and unusual weather. The strongest El Nino since 1997 in 2015 could have an important effect on commodity, and other asset markets.
Commodity Risk- Syndication/Distribution, Tax and Vendor Performance Risks
Commodity traders face a myriad of risks. Syndication/distribution, tax and vendor performance risks are just three of the many.
Crude Oil- The Bi-Annual OPEC Meeting in December
The upcoming meeting of OPEC, the oil cartel, will take place on December 4, 2015. Given the price of crude the actions of the cartel are likely to influence prices.
Commodity Risk- Regulatory and Reputational Risk
Commodity traders face a myriad of risk. Regulatory and reputational risk are to such risks that must be considered when entering into transactions.
Commodity Risk- Reserve and Settlement Risk
There are a myriad of risks in commodity transactions. Reserve and Settlement risk are two such risks.
The Four-Year Bear Market In Silver
Commodities have been in a bear market since making highs in 2011 and silver is no exception. Silver remains weak, even relative to gold in late October 2015.
Commodity Risk- Position Concentration, Proxy and Raw Data Risk
Commodity traders face a myriad of risks. Position concentration, proxy and raw data risk are three such risks.
Update on Russia and Commodities
Russia is a mineral rich nation that depends on commodity sales. A bear market in commodities and sanctions have resulted in economic hardship for the country.
Commodity Risk- Sovereign Control/Country Moniker and Sponsor Risk
Commodity traders face a myriad of risks. Sovereign Control/Country Moniker and Sponsor Risk are two such risks.
Commodity Risk- Force Majeure Risk and Funding Liquidity Risk
Force majeure risk is the risk of an unforeseen event that is an act of God. Funding liquidity risk is the risk that a party is unable to meet payment obligations.
Cocoa's wild ride higher
In terms of price, cocoa has been consistently the strongest soft commodity since commodity prices peaked in 2011. Supply and demand favors a strong cocoa price.
Commodity Risk- Foreign Exchange Risk and Geographical Risk
When it comes to commodity trading, there are a myriad of risks. This article deals with foreign exchange and geographical risk.
Commodity Risk- The Three I's - Inflation, Insurance and Interest Rate Risks
When it comes to commodities there are a myriad of risks. Inflation, insurance and interest rate are three risks that traders must consider.
Gold's Luster Tarnished
Gold has a dual role as a commodity and a currency. Even though the gold price has been dropping since 2011 it still may be expensive.
Commodity Risk- Curve Construction and Environmental and Social Risk
Commodity traders face a myriad of risks. Curve construction, environment and social risk are three such risks that must be evaluated and assessed on each transaction.
Backwardation and Contango
This article examines two terms commodity traders use to describe market structure- contango and backwardation. These terms describe the shape of the forward curve for a commodity.
Sweet Volatility In Sugar
Sugar had been in a bear market since 2011 reaching lows in August 2015 but that appears to have changed in the months that followed.
Crude Oil- The Cartel Takes a New Shape
The role of the international oil cartel, OPEC has changed over recent months and the power base is in the hands of Saudi Arabia.
Silver has followed gold higher in 2016 as precious metals prices emerge from over four years of bear market trading.
Evidence of a New Commodity Bull Market
After almost 5 years of lower commodity prices, there are signs that raw material prices have found a bottom and are now entering a new phase.
OPEC Scrambling As Oil Fundamentals Remain Bearish
Low oil prices led OPEC to call a special meeting in April 2016 to discuss the potential of a production freeze.
Why Precious Metals Will Continue to Move Higher
Precious metal prices reached lows in late 2015 and early 2016. The political and economic environment has been supportive of higher prices.
Logistics in Commodities- The BDI and Panama Canal
Logistics involves the shipping of a commodities around the world. The expansion of the Panama Canal is an important event for commodity markets.
Backwardation and Contango- The Economics of Commodities
Natural gas in the late spring and early summer of 2016 provides an example of commodity economics through term structure.
Grilling Season In The U.S.- Cattle and Hogs Seasonal Meats
Grilling season in the U.S. begins on Memorial Day and ends on Labor Day. Grilling season is the peak demand season for animal protein or meats.
Why Commodity Knowledge is Important for All Investors
We all have an innate knowledge of commodity markets. Using this knowledge will enhance our investment activities.
We All Have Innate Knowledge of Commodities
We all have innate of commodity prices that we can use in our investment activities.
Divergence In Early 2016- Commodities May Play Catch-Up
There was an important divergence between commodity prices and the U.S. dollar at the end of the first quarter of 2016.
What Would Negative Interest Rates Mean For Commodities
Negative interest rates cause depositors to pay for storage of savings. Negative rates are inherently positive for raw material prices.
Commodities Signal Inflation and Central Bank Policy Could Be the Cause
Many commodity prices reached critical lows in late 2015 and early 2016. Since then, raw material prices have recovered due to low interest rates.
Platinum and Silver Lag Gold
The inter-commodity spreads between gold and its precious cousins tell is more about value than price.
Wheat- Historically More Political Than Crude Oil
Wheat is perhaps the most political commodity in the world as the demand side of the fundamental equation dictates the politics of this commodity.
Commodity Options- Condor Spreads
Options are amazing vehicles, the allow you to position for markets you believe will go up, go down or remain stable.
Corn Versus Soybeans The Farmers Option
It is planting season in the U.S. and farmers are deciding what crop to plant. The corn-soybean spread is a tool that helps with this decision.
Archived content of Commodities
The Resurgence Of Gold
2016 has started out as a bullish year for gold which tends to appreciate during periods of fear and uncertainty.
Interest Rates and Commodities
There are so many factors that influence the path of commodity prices. Interest rates are just one of those factors.
Fall Is Harvest Season- A Grain Update for 2015
A recap on corn, soybean and wheat crops as the harvest of 2015 approaches.
Commodity Risk- Mapping, Modeling and Operational Risks
Each commodity transaction contains a myriad of risks. Mapping, modeling and operational risks are just three such pitfalls commodity traders must watch for and monitor.
Bulls Bears and Pigs
Investing or trading in the world of raw material assets requires discipline and an understanding of risk versus reward.
Commodity Risk- Political Risk
Political risk affects not only physical commodity transactions but the prices of raw materials.
Is OPEC Still Relevant In Crude Oil?
Four of the top five oil producing countries in the world are not members of OPEC. Given lower prices, it is possible that this cartel has seen its influence decrease.
Rising Interest Rates In The U.S. Mean The Bear Market In Commodities Continues, For Now
Rising U.S. interest rates is bearish for commodities. The first interest rate hike in nine years is yet another bearish sign for raw material prices.
The Continuing Effect Of The Strong Dollar on Raw Material Prices
A strong U.S. dollar is negative for commodity prices. A continuation of a rally in the dollar that began in May 2014 means the bear market in raw material prices is not over.
Will 2016 Be A Better Year For Cotton Prices?
In December 2015 cotton was trading at less than one-third the price it was in 2011. At under 65 cents per pound the downside is limited and upside explosive for this commodity.
Platinum Group Metals and the VW Scandal
One of the reasons why platinum group metals moved lower in the fall of 2015 is the scandal at VW.
2015 A Rough Year For Commodity Markets- Investor Interest Dries Up
Investor interest in commodities has dried up during the bear market that has taken prices lower. The market cap of ETF and ETN products shows investors shun short positions.
Lumber- Another Clue In Understanding The Economy
Lumber futures traded on the CME offer important benchmark data in terms the state of the U.S. and global economies.
Commodity Risk- Volatility and Volumetric Risks
Volatility and volumetric risks are two important risks that commodity traders face.
Intra-commodity spreads are also time or calendar spreads. These spreads offer clues as to supply and demand characteristics for individual commodity markets.
Commodity Risk- Country default and cross-asset market risk
There are a myriad of risks in the world of commodities. In this article we examine country default and cross-asset market risk.
Commodity Risk- Counterparty concentration and counterparty default risks
There are a myriad of risks in the world of commodities. In this article I look at counter party concentration and counter party default risk.
Commodity Risk- Accounting, Compliance and Correlation Risks
There are so many risks present in the world of commodities. This article describes accounting, Compliance and Correlation Risks
The Language of Futures- Key Terms in Futures Trading
The world of futures has a language all its own. It is important for anyone trading or investing in the futures markets to understand the terminology.
The Avian Flu and its potential effect on the price of hogs
The avian flu was one of the reason that hog prices moved higher in the spring of 2015.
Grain opportunities for the future- Corn
After three straight years of bumper corn crops, the price dropped dramatically. The fourth year of a bumper crop is not a guaranty.
Opportunities for the future- Sugar
The price of sugar is close to multi-year lows. Demographics and a strong El Nino this year could cause a recovery in the price of the sweet commodity.
Grain opportunities for the future- Wheat
Wheat is one of the most political commodities in the world. Given that the price of wheat is currently less than half the level it was in 2008 there are opportunities.
Bull and Bear Spreads in Commodities
Bull and bear spreads are tools used by commodity traders to express a view on either outright price or supply and demand within specific markets.
Brazil and Commodities
Brazil is a major commodity producing nation. The Brazilian currency, the real, is highly correlated with raw material prices.
Grain opportunities for the future- Soybeans
There was a big soybean crop in the past two years. The price has dropped but this year's crop is not certain therefore soybeans now offer upside opportunity.
Chicago Mercantile Exchange
The Chicago Mercantile Exchange is the largest commodity futures and options exchange in the world. This article examines the growth of the exchange between 1848 and 2015.
The IntercontinentalExchange has had a meteoric rise between 2000 and 2016. The exchange platform offers commodity as well as financial products for trading and clearing.
There has been a massive consolidation in the world of futures exchanges. Mergers and acquisitions have created economies of scale.
Corn versus Soybeans: This spread may yield info on the behavior of farmers
The corn-soybean ratio is a tool that farmers use to determine relative value. Often farmers use this metric when deciding which crop to plant.
Cattle versus Hogs: Inter-commodity meat spread provide opportunities
There is a historical price relationship between the price of beef and pork. Understanding the live cattle, lean hog inter-commodity spread will yield trading opportunities at time.
Commodities- What Is an IB, AP, CTA and a CPO?
The roles of an IB, AP, CTA and CPO are all subject to regulation by the CFTC. Many of these parties must register with the NFA and a pass proficiency exam.
Commodities-What is an FCM?
The FCM or Futures Commission Merchant plays a pivotal role in the world of futures trading. These regulated entities solicit and accept customer orders.
Physical Commodities and Derivatives- The History of a Pricing Pyramid
In the world of commodities, derivative products reflect the price of the underlying commodity it purports to represent.
What does a commodities broker do?
Commodity brokers act as an intermediary between buyers and sellers. They charge a commission or fee for their services.
Fundamental commodity forecasting- A tricky business
Fundamental analysis is the compilation of supply and demand data in a commodity in order to forecast future price trends.
How to read CME data- A wealth of information available free of charge
The Chicago Mercantile Exchange offers a tremendous amount of free data that is helpful for traders and investors alike.
Managing Risk in Commodities
Risk versus reward is a key component of any financial decision. There are a galaxy of risks when it comes to commodities or any asset class.
Basis Risk: The Difference Between Futures Prices and Physical Prices
Basis risk is an important concept in understanding hedging. This is the price differential between the futures price and the physical commodity.
Ethanol: A bio fuel
Ethanol is a bio fuel that is blended with gasoline. In the U.S. ethanol is produced from corn however in other areas of the world it is made from sugar.
Options - The Concept of Put Call Parity
Options are like a chess game. Understanding put-call parity is of paramount importance to anyone trading options or using them for investment purposes.
Margin and Clearing on Exchanges
On a futures exchange the clearinghouse becomes contract party to buyers and sellers. Margin insures contract performance.
Commodity production can be primary or secondary. Secondary production is when one commodity is produced as a result of another.
Pre-Export Finance in Commodities
Pre-export finance is a tool for producers who need financing to extract and bring commodities to market. Financiers provide immediate cash for commodities that are delivered post production.
Liquidity in Commodities
Liquidity is defined as the relative ease for market participants to buy and sell specific assets. Liquid markets attract speculators and tend to be less volatile.
Hedging: Controlling price risk using futures markets
Hedging is a tool that commodity producers and consumers use to control price risk. A hedge is a substitute purchase or sale that can protect against financial loss.
Platinum versus Gold: Both precious metals but which is more precious?
Platinum and gold are both precious metals. Due to its rare nature, platinum is historcially more expensive than gold. However, there are times when the opposite is true.
Why a Strong Dollar is Bearish for Commodities
There is a strong inverse correlation between the value of the U.S. dollar as measured against other currencies and commodity prices.
Managed Futures Funds- Another investment option
Managed futures funds are run by CTAs. These investment vehicles are useful in the diversification of a portfolio.
Straddles and Strangles- Two positions for specific market bias
Straddles and strangles are options positions used to trade market volatility rather than price direction.
Synthetic Long and Short Futures Positions Using Options
Options allow market participants to synthesize long or short positions using a combination of the instruments.
The Risks and Rewards of Selling Commodity Futures Options
The buyer of an option is purchasing price insurance while the seller of an option acts as the insurance company.
What Commodities Can You Trade on U.S. Exchanges?
What commodities can you trade on U.S. exchanges? There are roughly 30 different commodities that are available for trading on U.S. exchanges.
How to Become a Licensed Commodity Broker
Becoming a commodity broker requires a series of regulatory steps. Commodities are a highly cyclical business not just limited to the futures markets.
Key Features of the Series 3 Exam
The Series 3 Exam for commodity futures broker is an exam that tests for knowledge on the futures markets and industry regulations.
How To Start a Brokerage Firm
Most commodity brokers and traders who have reached success often think about opening their own brokerage firm at some point in their career.
Should I Invest in Commodities? How Much?
Commodities have become more of a mainstream investment and it makes sense to allocate more of an investment portfolio into commodities.
Explanation of Hedging in Commodities
A hedger is a party with an offsetting interest in a commodity by virtue of their underlying business. Hedgers are important market participants.
Trading Commodity Spreads
Many professional commodity traders focus on trading spreads. There are many different types of spreads.
Mobile Trading Platforms and Commodities Apps
Trading has evolved from placing orders through the telephone to computers and now mobile devices are becoming commonplace with commodities apps.
Commodity Brokerage Charges for Traders
Commodity brokerage charges depend on trading commissions. How much should you pay a commodity broker in commissions? Here's how to negotiate.
Buying a Put Option - Futures Strategy
Long put options can be used to bet a market is going lower or as price insurance on an existing long position in futures markets.
What's the Right Time to Buy a Call Option?
This article explains the strategy of buying a call option in the futures and commodity markets, when to use this option, and the risks and benefits.
When to Sell Options on Futures and Commodities
Here's when to sell options, controlling risk, and the benefits of an option selling strategy for trading in the futures and commodities markets.
Futures Options- The Basics
Learn the basics of futures options including calls, puts, premium and strike price and other important information.
Top Reasons Why Commodity Trading Can Lose Money
These are the top reasons why commodity trading can lose money. If you can overcome these mistakes, you have much better chances of being successful.
How Long Does It Take To Learn How To Trade Commodities
It takes a lifetime of hard work to master the ins and outs of commodity markets.
What are the Best Commodities to Trade?
One of the first steps in trading commodities is finding out which commodities you should be trading. Learn about the best commodities to trade.
How to Start Trading Commodities Online
Trading commodities online is a fairly simple process to get started, but it requires a great deal of homework and preparation.
Electronic Trading Versus Pit Trading
Electronic trading now dominates futures markets around the world as pit trading has become a thing of the past with the exception of a few exchanges.
This article and update describes the copper market and how the price of copper can be viewed as an indicator of global economic growth or contraction.
Corn Crop Planting and Harvesting Seasons
Corn crops are planted and harvested at different times around the world and many factors contribute to the price each year.
Fundamental Analysis of Trading Commodities
Using fundamental analysis to research and trade commodities and futures. Supply and demand are the main factors to determine the price of commodities.
How to Research Commodities
Research is of paramount importance for traders and investors as they approach the volatile commodity markets.
Investing In Silver Mining Stocks
Silver mining stocks are a good way to invest in the silver market. They can be more conservative than silver futures and silver etfs. A list of the largest publicly traded silver mining stocks is included.
Best Books On Day Trading Commodities and Futures
There are good books on day trading the commodities futures markets but there are also some that can mislead. Discipline is the key to success.
Put Option on Futures Contracts in Trading Commodities
The definition and uses of a put option and an example for the buyer and selling in commodities markets.
TradeStation Securities Review and Profile
Review of TradeStation Securities, an online futures broker. These days there are many choices, chose a platform like you would chose a car.
RBOB Gas Futures Profile
Profile of RBOB Gasoline futures including contract specs, gas fundamentals, gas reports and trading ideas for gas futures.
Profile of Lean Hogs Futures and Commodities
Fundamentals on lean hog futures, contract specs, USDA reports current status and tips on how to trade lean hogs in the commodity markets.
Review of Live Cattle Futures and Commodities Trading
Fundamental research of live cattle futures, including contract specs, reports and tips on how to trade cattle futures in the commodity markets.
What Are the Risks Of Commodities?
The main reason why commodities are considered risky is that they are highly leveraged instruments with a high degree of volatility.
How Much Money Do Commodity Brokers Make?
Commodity brokers are usually paid on a commission basis, but the business has changed dramatically since the advent of electronic trading.
Understanding Derivatives With Various Examples
A derivative is a financial instrument or security that replicates the performance of another asset.
Generic Trade—A Review of the Online Futures Broker
Generic Trade is an online futures broker that offers very low rates with no contingencies, no account minimums and a commission of 59 cents per side.
Daily Commodity: Definition and Examples
What is a daily commodity? Commodities are the raw ingredients of almost everything we consume or use in our everyday life: corn, wheat, oil, etc.
How Larry Williams Made A Million Dollars: Book Review
Book review offering highlights and suggestions -- How I Made One Million Dollars Trading Commodities Last Year by Larry Williams
USDA Weekly Crop Progress Reports
The USDA releases weekly crop progress reports during the growing season and monthly WASDE reports throughout the year.
Long-Term Commodity Index Chart
A commodity index chart is useful in monitoring trends in commodity prices but also watch the dollar, interest rates, and commodity currencies.
Markets for US Sugar and World Sugar
Sugar #11 is the world sugar price while #16 is the subsidized price and both trade on the futures exchange in the U.S.
Where to Find Commodities Research
Looking for information to research commodities to make trading decisions is not always an easy task. Commodities are not as mainstream an investment as stocks, so you have to look a little deeper to find the latest news and research. The good news is that there is plenty of research on commodities, but you just have to know where to find it.
The Pros and Cons of Ethanol
Ethanol, a biofuel, is always a topic of heated debate in trhe United States. It is also an important fuel in other nations of the world.
How to Buy Commodities and When
Commodity prices tend to move higher during periods of inflation, but buying cheap may be better. Here's how to buy commodities and when.
Day Trade to Win- "At the Open" Trading Course Review
DayTradeToWin.com offers an e-course or trading methodology for trading the e-mini S&P 500 futures contract.
USDA Prospective Plantings Report
The USDA releases the Prospective Plantings report at the end of March each year. They also issue monthly and weekly updates throughout the year.
Wheat Planting and Harvest Seasons
Wheat crops are planted and harvested at different times around the world. Wheat is an important political commodity.
Filing Taxes on Futures Trading
How to calculate and file taxes on futures trading using IRS Form 6781 & Gains and Losses From Section 1256 Contracts and Straddles.
Types of Commodity Trading Strategies
Commodity trading strategies are simply the basis for why and when you will buy and sell commodities. You should have some well thought out strategies before you begin trading commodities.
Day Trading Futures - Advantages and Disadvantages
Market conditions tend to dictate the best approach when it comes to long or short-term trading strategies.
Dr Alexander Elder - Come Into My Trading Room - A Complete Guide to Trading
Book review of Come Into My Trading Room - A Complete Guide to Trading by Dr. Alexander Elder. The psychology of trading is discussed as well as his Triple Screen System and the techniques he uses to trade futures and stocks.
Another Quality Trading Book
Read this book review of Come Into My Trading Room - A Complete Guide to Trading by Dr. Alexander Elder. The books discusses the psychology of trading which you need to review regularly. Page 2.
The Benefits of Paper Trading Futures and Commodities
Paper trading futures is one of the best ways to learn how to trade without putting any money at risk. Learn how to trade commodities and futures.
Commodities Trading and Technical Analysis
Commodity traders often employ technical analysis which requires the use of a price chart.
Trend Following in Commodities Trading
Trend Following is a very effective trading strategy in the commodity and futures markets and there are some tools to assess the strength of a trend.
Continuous Commodity Index (CCI): Definition and Uses
The CCI, formerly known as the CRB Index dates back to 1957. There are many indices out there today to trade or use to analyze the commodities market.
Where do Commodities Trade?
Commodities trade on regulated futures exchanges including the Chicago Board of Trade, Chicago Mercantile Exchange, New York Mercantile Exchange and ICE Futures US.
All About Margin on Futures Contracts
Futures Margin has many different meanings in futures trading and includes initial margin, maintenance levels, margin call and why margin changes.
Must Read Books For Commodity Traders
There are many books available for traders and investors. The experiences and knowledge of others is an important way to expand our horizons.
Why Commodity Prices Move Up and Down
There are many reasons why commodities move higher or lower. This piece lists some reasons why and suggests some resources to enhance knowledge.
Commodity Futures Research and Analysis Techniques
Research is a major function of trading commodities. The main techniques you can use to research commodities and futures markets are fundamental analysis and technical analysis. Keeping up with the latest futures news and reading research from commodity analysts will be very benefical to your commodity trading.
Commodity and Futures Options Education and Strategies
Futures options offer a lot of alternatives to commodity traders. You can add options to your futures trading strategies or just trade the futures options. In this section you will learn the basics of futures options and advanced option strategies including writing options.
Online Commodity Brokers for Futures Trading
Online commodity trading is increasing in popularity among commodity traders, but is it right for you? In this section, we will discuss the pros and cons of online commodity trading, the typical fees and profile some of the larger online brokers.
Explains the origins of commodities and why someone might want to invest in commodities and futures.
Managed Futures Performance Ratings and Research
Managed futures allow you to participate in the commodity markets with the benefit of having a professionally managed account. You will find many sources here to research the performance ratings and find out how to invest in managed futures.
Commodity Trading Strategies
There are many different trading strategies you can utilize when trading commodities. You can use some of these popular commodity trading strategies or learn how to develop your own.
Commodity Trading Basics
Every investor or trader should learn the basics before he or she begins trading commodities and futures. Here we will cover everything from contract specifications to placing of commodity trades.
Commodity Fundamental Research for Commodity and Futures Traders
Here you will learn about the different types of commodities and futures contracts that you can trade. The profile of each commodity contains its fundamental information and tips on how to trade it in the real world.
Commodity Book Reviews - Books on Trading Commodities and Futures
Reviews of books that focus on trading commodities and futures. Popular trading books and new trading books on commodities are reviewed to determine if they offer our readers any educational material on trading.
Commodity ETFs - Profiles of Commodity ETFs
Profiles of commodity ETFs will include the most active commodity ETFs. These ETFs invest in futures contracts based on individual commodities or a grouping of commodities. This may be considered a less risky way to trade or invest in commodities.
Day Trading Book Reviews
Reviews of books that are focused on day trading the commodity futures markets. Many of these books also include trading stocks, but the same methodology applies in most cases.
Reviews of Books on Commodity Traders
Reviews of books that focus on an individual commodity trader. They usually don't contain the author's specific trading strategies, but they teach a great deal about trading. Most of these books educate the reader on trading commodities and many make for an entertaining read.
Complete Trading Plans - Commodity Book Reviews
These commodity trading books usually include strategies on how to trade commodities as well as developing a trading plan that also covers when to enter and when to exit.
Fundamentals of Commodities Book Reviews
Reviews of books that are focused on fundamental analysis and research of the commodity markets. Many of these books cover the supply and demand characteristics and data on individual commodities.
Reviews of Books Related To The Commodity Markets In General
Reviews of books that are related to the commodity markets. Some books deal with economic situations while other may cover particular events or deal theories in trading commodities.
How to Become a Commodity Broker and Succeed
If you are interested in becoming a commodity broker, you will need to find a brokerage firm that trades commodities and you are required to be licensed and registered with the NFA. Here, you can learn what it takes to become a commodity broker and what it takes to be successful.
Commodity Trading Systems
Commodity trading systems are a mechanical way of trading the commodity markets. This means that a systems gives you automatic signals to buy and sell commodities. This section teaches you how to design your own trading system or purchase a system that meets your trading objectives.
How to Hire a Commodity Broker for Futures Trading
Before you can begin trading commodities, you will need to find a good commodity broker. This section covers what you need to know before you hire a commodity broker and what you should expect from a good broker. We will also discuss many of the caution signs you want to be aware of with a broker.
Managing Commodity and Futures Trading Portfolio
Managing a commodities portfolio requires some initial planning - a trading plan. You may tend to stray from a good trading plan, so we will focus on keeping you on track with managing your commodity trades, money management techniques and avoiding high trading fees.
Commodities Weekly Review
Every weekend the commodities markets are reviewed for the commodities that made headlines and an explanation of why they moved. Opportunites in commodities for the week ahead are also examined.