Commodities - Trading Instruments

When trading commodities, you can trade in two directions. Two way prices comprise the "Bid price" and the "Offer price", the difference between these prices is known as the spread. Buy Positions Opening a long position refers as op...

Before futures trading came about, any producer of a commodity, for example a farmer growing wheat or corn, found himself at the mercy of a dealer when it came to selling his product. The system needed to be legalized in order that is...

Trading futures contracts have several advantages over other investments. Futures are highly leveraged investments. Speculating with futures contracts is basically a paper investment without need to hold the commodity. And inves...

A futures contract is an agreement between two parties to buy or sell a specified asset in the future for a price agreed upon today. Futures contract help mitigate the risk of world price fluctuations of the asset. The party agreei...