Question by saharshd: How is a commodity market related with Stock Market?
pls provide answers by giving examples.
My chosen answer:
Answer by bostonianinmo It isn’t related.
Commodities are speculative investments in the future price of “commodity” items. Sugar, wheat, corn, pork, steel, gold, oil, etc.
Stocks represent ownership in a company.
The only common denominator is that both are “investment” vehicles. A carefully selected stock portfolio will grow substantially over time. Commodities are highly speculative and are only for investors with a LOT of experience in the specific commodities they are trading AND a high tolerance for risk. Many investment advisers consider commodities little more than legal gambling even for seasoned traders.
One of the best videos I have come across on the subject of futures market.
See today’s video: www.mfglobal.com/individual-trading/trading-advice/market-insights MF Global Senior Strategist Mike Sabo discusses energy futures markets. Mike’s Bio: www.mfglobal.com Video Rating: 5 / 5
Question posed by RAJA S: Article on Investor Perception towards Commodity Market?
hi! friends plzzz help me to find some article or report related towards Investor Perception on Commodity Market…
The No 1 answer:
Answer by b2fnow http://www.investopedia.com/articles/optioninvestor/08/invest-in-commodities.asp
Question posed by Phoebus: Anyone experienced in commodities options trading?
I have sold 3 – MARCH08 120 CALL at 7.36
Now I want to buy the sold CALL. But the Open Interest is 0 and the Market Price of Coffee is around 133. How do I buy this CALL or hedge it????
Best answer:
Answer by Oh Boy! First, if you’re short 3 options then there can’t be zero open interest.
Second, according to Bloomberg the option interest for that option is 1473.
Finally, there doesn’t have to be open interest for you to trade the option. Otherwise how would there EVER be open interest? Your broker should be able to get the options bought back. Just give them an order.
You don’t seem to really understand option trading so why are you selling options? The best way to start would be to buy options or sell spreads.
Question by Sleuth: What is futures commodity trading ?
The top answer:
Answer by slashpigeon86 It is trading in contracts (called futures or forward contracts) in which you agree buy (or sell) commodities at a set price in the future. Falls under market speculation… often used as a tool for hedging funds.
Question posed by deepak vieri ziege: How does future trading rises price of a particular commodity?
future trading is agreement between two parties to sell /buy products agreed on a future price…….how this rises price of the goods?
Best answer:
Answer by SDD It could raise prices or lower them. Depends on what the buyers and sellers are anticipating in their bids.
Take a look at one aspect of commodity markets through the eyes of this video maker.
In an interview with Mark Mobius, Chairman of Templeton AMC, said that he is bullish on gold prices and he expect inflation to be a big matter of concern over the long period.
A question from Rohit: I want to know the “Option” traded in commodity market (like call option and put option). How it can be trade.
I want to learn the option trade so please teach me in simple english.
Best answer:
Answer by Alex Your question cannot be answered in a short sentence or paragraph. Use Google, Investopedia, Wikipedia and exchanges’ websites to learn some of the basics of options.
Do you know better? Why not leave your own answer in the comments below!
