Trading and investing in commodities
Get rich by investing in commodities like oil and gold! This guide will teach you to make money on commodity trading.
Commodity Trading allows you to make money buying and selling of commodity derivatives.
Commodity trading is very exciting. Not so many individuals are doing this as for example stock trading and currency trading, but it is an equally attractive option.
What is commodity trading?
You do not buy bags of corn or barrels of oil when you are involved in commodity trading.
When you invest in commodities you do not buy raw materials, but rather in the form of commodity derivatives. A derivative is a financial contract linked to a commodity price.
What ingredients can you buy?
It depends on what financial services you use. You can buy agricultural products, metals, ship cargo, crude oil, electricity, grain, coffee, gold, silver, and a whole host of other ingredients.
Where to Buy Commodities?
We got a question from a reader about how to buy produce. He was told that the raw materials were to be bought at the supermarket.
Commodities are not what one trader, but Commodity derivatives. These are financial products that reflect the raw material price and value in the market.
Commodity trading must take place via an online broker offering trading in commodity derivatives.
