123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Commodity Trading Involves Some Risk With Big Rewards

Profile Picture
By Author: John Tang
Total Articles: 512
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Commodity trading is the buying and selling of contracts of items that we use everyday. It is the trading of primary or raw products. Some of the items traded in the commodities market include such common, everyday items as: soy beans, cotton, orange juice, cocoa, sugar, wheat, corn, barley, pork bellies, milk, feedstuffs, fruits, vegetables, other grains, other beans, hay, other livestock, meats, poultry, and eggs. Energy items that are traded on the commodity markets include oil, natural gas, electricity, and gasoline. The commodity speculators in the energy market were blamed for the recent price increase in the cost of gasoline at the pump.

Buying and selling commodities is very similar to buying stocks and bonds on the stock market but with much more risk. Since it is much more volatile, commodity trading is very speculative, involves a high degree of risk, and is designed only for sophisticated investors who are able to bear the loss of more than their entire investment. It is not for the investor with a weak stomach! However, commodity trading is a battle between return and risk. Because of the leverage involved, ...
... you can achieve a higher rate of return than from most other forms of investment, but at a higher risk.

Commodities trade on different markets than typical stocks. For example, most people are familiar with NASDAQ or NYSE (New York Stock Exchange) for trading stocks and bonds. But commodities are traded on the world market. A few of these places are the Chicago Board of Trade (CBOT), the New York Board of Trade (NYBOT) (these two exchanges trade much of the grain and agricultural commodities), the Chicago Mercantile Exchange (for livestock and meat), the New York Mercantile Exchange (NYMEX) for energy, and the London Metal Exchange for precious metals like gold and silver.

Since it is so risky and speculative, many investors shy away from investing in commodities. However, it can be a very lucrative way to make money if you have the stomach for its wild ups and downs.
Get Starting with Commodity and Foreign Exchange Trading today by visiting The Trading Options Experts.

Total Views: 356Word Count: 351See All articles From Author

Add Comment

Business Articles

1. Finding A Trusted Sustainability Consultant In Abu Dhabi
Author: Agile Advisors

2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors

3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review

4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals

5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo

6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan

7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun

8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie

9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort

10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd

11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo

12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals

13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene

14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog

15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: