by John E. Lester

A question asked by Dulcinea: How can you tell if a futures market is in contango or backwardation?
If you have some typical futures prices, how do you know if the market is in contango or backwardation?

My chosen answer:

Agree or disagree? Leave your own thoughts below.

I was looking for videos about futures market and found this super video which I am sure you will find informative.

Interview with Leo Melamed, Chairman Emeritus of CME and Author of “For Crying Out Loud” (Bloomberg News)

by terry6082 Books

Question posed by Mahesh k: Commodity Trading?
What is open Interest in Commodity Trading ??

Most detailed answer:

Answer by infallible_oracle
The number of futures contracts that are outstanding and still open at the end of a trading day.

A rise or fall in open interest shows that money is flowing into or out of a futures contract, respectively. In futures markets, rising open interest is considered good for the current trend.

Open Interest is also a good measure of liquidity in the underlying contract

Provide your own answer to this question below!

I came across this video about commodities trading the other day and thought that you might find it interesting.

Commodity trading typically works in the form of futures, with investors agreeing to purchase a specified amount of a commodity at a specific price. Discover how risky commodities trading can be, and how outside factors make a huge impact, with information from a financial consultant in this free video on investments. Expert: John Pinelli Bio: John Pinelli is a financial service broker for Northwestern Mutual Insurance. Filmmaker: Bing Hu

by heatingoil

Question posed by jr08540: Commodity trading?
I received a newsletter on resource option trading. They provide timely advise for option trading on commodities, such as sugar, copper, gold, etc. I am a novice but would like to give it a try with initial $ 8000. Can anyone tell me which online commodity trading brokage house provides great services with reasonable (least expensive) commission?

Thanks in advance.

Most detailed answer:

Answer by daveduncan40
I advise caution with this investment. Unless you are VERY well informed in a particular commodity then this is a dangerous move. I would suggest you begin your investing in stock mutual funds, especially index funds. Commodities fluctuate far too much for a novice.

What do you think? Leave you answer below!