Home Add to Favorite Contact Submit  
             24 January, 2021

Category:  Articles » Finances » Stocks-Mutual-Funds


Discover The Secret To Making A Living Trading Futures Online Guaranteed!

         Views: 1539
2006-12-20 00:49:22     
Article by Glen Stevens

Trading Commodities

Futures Trading involves a trading style based upon the potential Future performance of certain commodities and agricultural products; like coffee, sugar, gas, oil, gold. Speculators are in the commodities market only to make money and often buy and hold positions for just hours or even minutes. They have to be traded through people and firms who are registered with the Commodities Futures Trading Commission.

Electronically traded contracts, such as the e-mini's tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread. They have no real interest in buying or selling the commodities for use; instead they buy the commodity on paper and sell it for profit. It is a standardized contract that is used to buy or sell an underlying instrument this being the derivative of an asset, which is usually bonds or commodities at a date in the future at a price fixed on the last day of trade.

Futures trading is actually commodities trading - it is the practice of trading commodities to turn a profit, and it takes experience to truly become successful at this type of investing.

Futures Speculation

Speculation brings about a gradual adjustment of prices to the contingencies foreseen by the speculator. It follows from the above that speculation steadies the trend of prices and restricts the movement of prices within a narrow range. You might think that this is gambling, but the fact is that speculation refers to the condition of a legitimate enterprise based on the current condition of the market trends.

All futures contracts are generally made for the purpose of speculation or hedging. The futures contracts are made for two distinct purposes: speculation and hedging. However, true trading is actually speculation (managed risk).

Once speculation began using futures contracts, it went beyond the demand and supply of actual goods. These kinds of contracts are based on speculation and the speculation is done based on market trends.

Sometimes over enthusiasm and bad speculation has resulted in disasters.


An exciting alternative to Forex and Futures Trading at E-currency Trading. In simple terms e-currency is Internet Money. The demand for e-currency should only grow as Internet Commerce grows.

Specialized in: Discover - Secret - Making - Living Trading - Guaranteed
URL: http://infoburner.com
Print article      Bookmark this page
Related Articles 
Stocks to Buy Before Inflation Hits (Popularity: ): As the economy is finally looking like it's emerging from the depths of one of the biggest recessions in a generation, there are other concerns many investors may now have. The government had to pump trillions of dollars into the economy to prevent a Depression from occurring. Because of this, inflation is all but a guarantee.Inflation is not always a bad thing. In fact, any growing economy will have and ...
Mutual Funds Investing Ideas (Popularity: ): Are you someone who is worried about where to invest your hard-earned money? Do you need ideas for investing? If you ask me, I would suggest Mutual Funds - for they give better returns than banks and are considerably less risky than stocks. For investing in mutual funds, consider the following points:1. The first point before investing is to clearly identify what you need. Is it big returns or safety? ...
Mutual Funds (Popularity: ): A mutual fund is a company that pools investors' money to make multiple types of investments, known as the portfolio. Stocks, bonds, and money market funds are all examples of the types of investments that may make up a mutual fund. The mutual fund is managed by a professional investment manager who buys and sells securities for the most effective growth of the fund. As a mutual fund investor, you ...
Asset Allocation (Popularity: ): According to Wikipedia, Asset allocation is a term used to refer to how an investor distributes his investments among various classes of investment vehicles (e.g., stocks and bonds). You may have a lot of cash but you do not know how do you allocate that cash so that you can make money from that invested cash. That is described as asset allocation. According to Investopedia "An investment strategy that aims ...
Kids Buy Stock: But They Need Help (Popularity: ): I love it when kids buy stock. It shows a lot of the kind of person he or she is going to turn out to be in the near future. A business person ready to encounter the real world and not afraid to do so by himself or herself. The kind of person that will become a leader in a globalized world; someone very important in circles of society and ...

Related Business 
Commodities Broker (Popularity: ): Expo Futures & Options, LLC is a leading commodities futures trading broker offering the latest in online futures trading technology. Our rates are very competitve and we offer extremely low day trading margins. We are registered the with Commodities Futures Trading Commission and a member of the National Futures Association.
ShadowTraders, LLC (Popularity: ): Shadowtraders is futures trading: Emini, trading software, trading education. Our trading course includes trading systems with online trading. I just reattended the 4 Day Seminar and I have to say it was eye-opening the second time around. After getting my feet wet with futures and swinging hard between stellar and disastrous results I figured I needed to review my basics.
Business With Trading (Popularity: ): Gain an edge over the other market participants with day trading strategies via our many resources including our Emini Futures Day Trading Support Room. Learn to be consistently profitable and have A Business With Trading. An online trading resource for traders wanting to learn day trading stock index futures. You will see Live S&P 500 ES Emini Futures Trading via our Trading Room, See Daily Market Analysis Predictions, and Correlations ...
Managed Futures Brokers (Popularity: ): Managed commodity futures are an integral part of modern futures & options trading and commodity trading advisors can be a valuable resource for investments futures. Our tools include information on managed futures strategies and managed futures ranking for some of the top managed futures names in managed commodity futures today!
Learn Futures Trading (Popularity: ): Futures Press will give you all the tools and insight necessary to start futures trading. We are a recommended informational source for crude oil, gold. Futures Press provides Innovative, Unique & Thought-Provoking Products for Futures Traders and Brokerages.
Online Futures Trading (Popularity: ): Offers information and resources to assist traders in formulating and implementing an online futures trading strategy.
Online Trading Institute (Popularity: ): Online Trading Institute provide courses and classes in Intraday Stock Trading, Futures Trading, Forex Trading, Commodites Trading, Currency Trading for Traders in Houston USA.
Futures Trading - Futures Market Recaps (Popularity: ): PitGuru is Futures Trading. PitGuru exists to bring the knowledge & insight of experienced floor traders to the trading public. We invite you to explore this incredible commodity resource, much of which is free just for registering. Then, when you are ready, step up to our Premium Trade Recommendation Service and experience the Evolution of Trading.
Larry Levin's Trading Advantage (Popularity: ): Step inside and get information on futures trading for stock market indices, and access tips and daily blogs for trading the emini S&P and trading futures markets.
Online Trading Futures (Popularity: ): Join us Online Live from the Chicago Trading Floor, as we teach you REAL-TIME trading strategies, you See and Hear Live – Chicago trading floor information on the SP Index, Dow Mini, Bonds, Notes, Futures and Commodities – communicated to you online to your PC via Live Audio and Real-Time Charts.