Commodities ???
Sunday, March 29th, 2009 at
12:00 am
loser asked:
Can you buy and sell commodities in the same manner you do with stocks…. Can you buy online? any good info websites on commodity trading?
Can you buy and sell commodities in the same manner you do with stocks…. Can you buy online? any good info websites on commodity trading?
Tagged with: Buy Sell • Commodities • Commodity Trading
Filed under: Commodity Trading
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Short answer, yes. But, be very careful. In commodities, if you buy at 10 and the value drops to ….. say…. 8, you have to pay up the difference or sell for a loss. Commodities have great potential “in both directions” gain/loss.
You can also buy ETF’s (online like stocks) that deal with commodities. PowerShares DB Commodity Index Tracking Fund (American Stock Exchange symbol is DBC). They also have: Agriculture (DBA), Industrial metals (DBB), Energy {Crude oil, natural gas, refined products} (DBE). can give you more information on these.
In principle yes. In practice, it’s not so easy for a small investor. Luckily there are nowadays a lot of ETFs that track commodity prices. And these you can buy and sell exactly as stocks.