Finance and Credit Professional

If you're a commodities trader or are looking to become one, you know that two elements motivate you: speculation and hedging. Although speculation and hedging are not mutually exclusive and you can do both at the same time, speculation is primarily profit oriented. Hedging is more about protecting your profits or minimizing a potential loss [...]

There are several different types of commodities. Commodities are categorized so that it's easier to price compare, do research, and to make other trade tasks convenient. If you're an investor who wants to get involved in commodities trading, you need to know the basics. This is indeed one of the riskiest areas to invest in, [...]

Many of the more common commodity trading strategies actually serve two purposes. The turn of a profit is but one. A hedge is the other purpose. Hedging is a method of minimizing risks by attempting to purchase some form of insurance. As well as minimizing risks, it also usually caps potential [...]

When you do fundamental analysis within commodities trading, you look at economic factors, including crop yields, weather predictions, new oil extraction technology or new mines opened, and the like. Basically, you look at all factors that affect supply and demand.By contrast, technical analysis is done by charting mathematical manipulations on such variables as price, volume [...]

Every day, commodities are traded on the more than one dozen major commodity exchanges that are situated worldwide.Chicago houses two exchanges, the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange (CME). Between these two exchanges, a wide array of commodities are traded, bought and sold.The CBOT has a very diverse collection of [...]