ansy asked:


Do agricultural products and agricultural commodities have the same meaning and can they be used in the same situations? Which is better: agricultural commodities market or agricultural products market?

ADVFNplc asked:

For more information on ADVFN.com get in touch on support@advfn.com or give us a call on 0207 0700 961 in the UK or 888 992 3836 in the US. Commodity trading is the buying and selling of materials as diverse as pork bellies, oil, gold and orange juice on an exchange. Commodities exchanges usually trade futures contracts, buying and selling agreements to receive a commodity at a certain point in the future. Most commodity markets across the world trade in agricultural products and other raw materials such as wheat, sugar, coffee, metals and oil.

babygirl8924 asked:


you know how some countries get their income off of selling or trading products(gold, coffee, silver, agricultural products)to other countries, so i was wandering how the US makes money…

If you are a first-time trader, the easiest and most useful avenue to choose for yourself is commodity trading, with its myriad choices. It is an upcoming avenue for investors who are looking to earn a lot of money, with an extremely comprehensive and unlimited list of products which can range from agricultural products to petroleum and consumer products, or even currencies.

It is only natural with the advent of technology that commodity trading now takes places on the world wide web as well. Online commodity trading is quite the rage, especially with first-time traders.

It is advisable for novices to begin with seven to eight commodities – this ensures the two fold purpose of proper monitoring and remaining on the safe side. Since commodities are tracked online everyday, it makes sense to have a reasonable number of commodities, especially in order to truly understand the hows and whys of the market. Not only novices but experienced traders too opt for no more than eight commodities because the simultaneous tracking of more than eight is a confusing and troublesome job.

Online commodity trading, in essence, is no different from a classic trading environment. The trading floor and the broker along with all the basic principles of trading apply to online commodity trading too. The only difference is that the trading is going on online.

If you are a novice commodity trader and are looking for a sure-fire formula to help with the management of online commodities, you will be disappointed. You should be extremely careful as to where you click because that one click could prove fatal.

If you don’t want to or can’t handle online commodity trading directly, it is possible for your chosen executor to hold an account, as long as you use a written power of attorney. This executor must be extremely reliable because trading involves making very important financial decisions and in this case you are handing over this power on your own behalf to the executor.

If you would prefer to work in a group as opposed to trading individually, then you can join commodity-related mutual funds and commodity pools similar to limited partnerships. You can make this even easier for yourself by simply going through online commodity trading exchanges. You can offset risks in your whole portfolio by combining the low-margin markets of commodities with stocks and bonds investments. This is one of the major reasons why commodity trading is so useful.

You have to be really careful while making financial decisions online, although the basic principles behind online commodity trading and classic commodity trading are absolutely the same. Just don’t let the simplicity and ease of the Internet blind you from making well informed and smart choices when it comes to your finances.



By: Abhishek Agarwal

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commodity trading