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About Commodity Trading
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Commodity trading is fast becoming the weapon of choice for a growing number of people who want to earn big money from their investments. This is because commodities represent an ever-expanding list of products that may be traded, from metals and petroleum, to agricultural goods, to consumer products and even to certain financial instruments and currencies.
When compared with other trading avenues, commodity trading presents infinite options, which a first-time trader might find valuable and easy to understand.
Small traders initially trade on commodities like grains, meats and certain metals because they are have lower margins compared to the other products.
Experts say that first-timers should begin with a combination of around six to eight commodities during their initial attempts to ensure proper monitoring and to be on the safe side, as well. Commodity trading is usually tracked on a daily basis, so it's best that there are only a handful of eggs in your basket at the onset to get a feel of how the market works.
In fact, even the most expert traders opt to have just around 8 markets under their wing, because tracking too many markets that are moving at the same time eventually becomes a tedious task.
Traders are advised to avoid large range commodities because the risk of losing is greater with these products.
You may want to start with corn market, because its highs and lows are often predictable and you don't have to worry too much about high margins. Wheat is also a good first choice because it moves much in the same way as corn. In the meat market, cattle is a workable jump-off point, though some experts urge against it because it often leads to a pretty wide range.
Products will large ranges include soybeans, cotton and sugar. In the past, sugar was considered a low-margin good because you don't really risk much when you get into it. However, current conditions in the market are not so favorable toward sugar and sugar-related goods anymore that it's best not to gamble too much into it.
The best way to invest in commodities is to trade futures. What you do is open an individual account, which can be access indirectly via a broker or directly through a futures commission merchant.
You can also engage in commodity trading via an account that is held by your chosen executor, by way of a written power of attorney. If you choose to take this path, you have to make sure this person is somebody you can trust because he will be making major financial decisions for you. If individual movement is not your type, you can share the load by joining commodity-related mutual funds and commodity pools, like limited partnerships.
Perhaps the best thing about learning to trade commodities is the fact that these low-margin markets, when combined with investments in the likes of stocks or bonds, are able to offset risks in your overall portfolio. This is not to say, however, that commodities do not come with major risks. Get the right information and trade wisely.
Foreign Currency Trading News
Are you missing out on forex trading? - Globe and Mail
 Globe and Mail | Are you missing out on forex trading? Globe and Mail Powered by developments in electronic trading, the foreign exchange (currency exchange) market has grown into a global business turning over $4-trillion (US) a day, according to the latest Bank for International Settlements triennial survey (2010). |
iFOREX Adds Oil to its list of Tradable Commodities - EON: Enhanced Online News (press release)
iFOREX Adds Oil to its list of Tradable Commodities EON: Enhanced Online News (press release) ROAD TOWN, Tortola--(EON: Enhanced Online News)--Leading currency trading company, iFOREX, has recently expanded its services, giving all Forex trading accounts direct access to oil CFDs. Targeting an audience that has little or no experience with ... iFOREX Introduces the NASDAQ Index to its Global Trading Platform |
Forex Trading Volume Drops for First Time Since 2009 - Wall Street Journal
 FXstreet.com | Forex Trading Volume Drops for First Time Since 2009 Wall Street Journal By comparison, spot currency trading was up more than 9%. "There was fear of counterparty risk," said Charles St-Arnaud, vice president of foreign-exchange research at Nomura Securities in New York, adding that "you needed to pay a huge premium to ... Currency trading in London surges Currency Trade at a Record $977 Billion a Day in North America, Fed Says Global forex volumes dip, up in N.America |
Top 5 Forex Spread Betting Tips for New Traders - MarketWatch (press release)
Top 5 Forex Spread Betting Tips for New Traders MarketWatch (press release) LONDON, February 9, 2012 /PRNewswire via COMTEX/ -- Forex spread betting offers a number of benefits over traditional forex trading; from tighter fixed FX spreads to greater leverage, spread betting allows for substantial gains from small movements in ... |
Forex Trading Volume Rises in North America: What it Means for You - DailyFX
Forex Trading Volume Rises in North America: What it Means for You DailyFX By Christopher Vecchio, Currency Analyst The Federal Reserve's Foreign Exchange Committee released its semi-annual survey on the average daily trading volume in the forex market, showing interesting shifts in overall trading. According to central bank ... |
'Draconian' Currency Ban Chokes Off Trading: Argentina Credit - San Francisco Chronicle
'Draconian' Currency Ban Chokes Off Trading: Argentina Credit San Francisco Chronicle Foreign-exchange volume in the Mercado Abierto Electronico, the country's biggest electronic market, sank 47 percent last month from a year earlier to $3.8 billion, the least since October 2006. Restrictions on foreign-currency purchases imposed by ... |
CFTC obtains permanent injunction against InterForex for acting as an ... - HedgeWeek
CFTC obtains permanent injunction against InterForex for acting as an ... HedgeWeek The US Commodity Futures Trading Commission (CFTC) has obtained a federal court consent order that permanently bars defendant InterForex, Inc, of Tortola, British Virgin Islands, from soliciting or accepting orders to trade foreign currency (forex) ... |
Two Principals of Foreign Currency Trading Firm Sentenced for $17 Million ... - LoanSafe
Two Principals of Foreign Currency Trading Firm Sentenced for $17 Million ... LoanSafe by Evan Bedard on February 3, 2012 in Scams (Source: FBI) – CHICAGO—Two principals of a foreign currency trading firm that collapsed in 2007 were sentenced to 17 years and 12.5 years in federal prison, respectively, after pleading guilty to fraud ... Illinois men sentenced for stealing in fraud scheme |