How to Invest in Commodities

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How to Invest in Commodity Mutual Funds

A common way to invest in commodities is through a mutual fund. It may be the simplest way for you to get involved in the commodities markets because you’re relying on a trained professional to do the [more…]

Commodity Mutual Funds on the Market

If you’re looking to invest in commodity mutual funds, you can choose from two main funds: the PIMCO Commodity Real Return Strategy Fund and the Oppenheimer Real Asset Fund. [more…]

Risks with Commodity MLPs

Investing in commodities through master limited partnerships (MLPs) comes with a number of risks. Here’s a quick list of some of those risks so that you don’t come upon any surprises when you get your [more…]

Commodity Trading Advisors

If you’re interested in investing in commodities through the futures markets or on a commodity exchange, getting the help of a trained professional to guide you down this path is always a good idea. [more…]

Commodity Pools

Another way you can get access to the commodities futures markets is to join a commodity pool. As its name suggests, a commodity pool is a pool of funds that trades in the commodities futures markets. [more…]

The Competition in Commodities Exchanges

Whether you’re an individual seeking to hedge commodity prices for the future or an investor interested in capturing price discrepancies and fluctuations in the global commodity markets, the commodity [more…]

Major Commodity Exchanges on the Market

A number of commodity exchanges operate worldwide and specialize in all sorts of commodities. Before 2007, the industry was characterized by several players, each dominant in a particular segment of the [more…]

Oversight of Commodity Exchanges and International Exchanges

Commodity exchanges are under strict oversight, to protect all market participants and ensure transparency in the exchanges. These main regulatory organizations have oversight of commodity exchanges in [more…]

How an Exchange Determines Commodity Prices

Have you ever picked up the newspaper and read that commodity prices (most likely crude oil) reached a new high? Have you ever asked yourself how these prices are determined? Well, they’re determined on [more…]

Self-Directed Commodity Accounts

After you select a commodity brokerage firm you’re comfortable with, it’s time to open an account and start trading! You can choose from a number of different brokerage accounts. Most firms will offer [more…]

Ways to Invest in Commodities Futures

You have a number of investment vehicles to access the commodities futures markets. A common misconception among investors is that you can only trade commodities by opening a futures account. While the [more…]

Invest in Commodities Companies

Because the commodities markets are so wide and deep, you have a number of investment vehicles to access these markets. While the futures markets certainly provide an avenue into the commodities markets [more…]

Commodity Option Characteristics

Every option in the commodities markets has different characteristics, depending on how you want to exercise the option and what action you want to conduct when it’s exercised. Put simply, you can use [more…]

Managed Commodity Accounts

In a managed commodity account, you’re essentially transferring the responsibility of making all buying and selling decisions to a trained professional instead of making those choices yourself. [more…]

Commodity Order Contract Parameters

Your trading account is your link to the commodity exchange. The broker’s trading platform gives you access to the exchange’s main products, such as futures contracts, options on futures, and other derivative [more…]

Types of Commodity Orders

One of the most important pieces of information you need to indicate in a commodity transaction is the order type. This indicates how you want your order to be placed and executed. [more…]

The Roles of People Involved in Commodity Orders

When you pick up the phone or log in to your online account and place an order for a commodity, it’s sometimes easy to forget that your order isn’t placed in a vacuum. You place the order and wait for [more…]

The Roles of People at the Commodity Exchange

A number of people are involved in making sure that your commodity order is executed as smoothly and efficiently as possible, and your order goes through an extensive supply chain before it’s executed. [more…]

How to Own a Piece of a Commodity Exchange

One of the biggest trends in the global investment game in the beginning of the 21st century is the increasing popularity of commodities in investor portfolios. Driven by high commodity prices, many investors [more…]

Introduction to Futures, Options, and Commodities

Some investors think that “futures and options” and “commodities” are basically the same, but they’re not. Commodities are a class of assets that includes energy, metals, agricultural products, and similar [more…]

How to Trade Commodities in Futures Contracts

The commodity futures market is divided into two segments: one that’s regulated and another one that’s unregulated. Trading in the regulated portion of the futures market is done through designated commodity [more…]

Hedgers Who Trade Commodities in Futures Contracts

One group who trades commodities in the futures market is commercial producers and consumers of commodities who use the futures markets to stabilize either their costs [more…]

Speculators Who Trade Commodities in Futures Contracts

One group that trades commodities in futures contracts consists of individual traders, investment banks, and other financial institutions who are interested in using the futures markets as a way of generating [more…]

The Pieces of Commodity Futures Contracts

Trading commodities through futures contracts takes a lot of discipline, patience, and coordination. One of the biggest deterrents to participating in the futures markets is the number of moving pieces [more…]

Information Involved in Commodity Futures Contracts

Because commodity futures contracts can be traded on only designated and regulated exchanges, these contracts are highly standardized. Standardization simply means that these contracts are based on a uniform [more…]

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