commodities

Commodities can be described as physical goods such as food grains and metals that are traded by futures contracts.

Just as investors trade stocks, commodities are also traded over future exchanges in a bid to make profits. The demand and supply of these commodities decide the price of the commodities being traded.

When commodities are traded, the process is known as futures trading. The future trading is different from stock trading in the sense that in the former case, you do not actually own or buy anything as in stock trading.

At times, it has been seen that futures trading is confused with options trading. Options trading is defined as the contract to buy or sell an underlying asset at a predetermined price before a fixed date in the future.

The assets that are traded under options trading are generally stocks, currencies and stock indices whereas in futures trading commodities like food grains and metals are traded.

You'll find bloggers talking about commodities at sites like Commodity Online and New Orleans City Business.

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Original Technorati articles tagged “commodities”

• in Finance
  Whistling Past the Graveyard
  We need to deal with the problems in the American economy before they deal with us
  by bwdelaney / on May 17, 2011
• in Business
  I'm a Sucker, but Not for Gold
  All that glitters is not gold
  by stonebridge12 / on May 12, 2011
• in Business
  The Days Of Easy Money From Commodities Is Over
  Easy Money From Commodities Is Finally Coming To An End
  by fhrost0213 / on May 7, 2011

Latest blogosphere posts tagged “commodities”

 

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• Growth, Yield and Kinder Morgan: The Best Pipeline Play for 2012

  
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  Daily Updates about Commodity in India — Authority: 151
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  Daily Updates about Commodity in India — Authority: 151
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  Daily Updates about Commodity in India — Authority: 151
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  20 hours ago

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