How to Invest in Commodities

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Time and Location Information in Commodity Futures Contracts

There are many moving pieces involved in trading commodity futures contracts. The regulatory bodies that are responsible for overseeing and monitoring trading activities on commodity futures exchanges [more…]

Margin in Commodity Futures Contracts

One of the unique characteristics of commodity futures contracts is the ability to trade with margin. If you’ve ever traded stocks, you know that margin [more…]

Contango and Backwardation in Commodity Futures Markets

You need to be familiar with a couple technical terms related to movements in the commodity futures markets if you want to successfully trade futures contracts. [more…]

The Metallgesellschaft Debacle with Commodity Futures

Trading commodity futures contracts certainly isn’t for the fainthearted. Even the pros can run into lots of trouble in the futures markets. Consider what happened in the 1990s to a company called Metallgesellschaft [more…]

The Difference between Futures and Options in Commodity Markets

There’s a big difference between futures and options. Often folks think of futures and options as being one and the same in the commodities markets — that’s understandable, because whenever you hear “futures [more…]

Commodity Options in Action

Understanding commodity options can be challenging because they’re, in fact, derivatives used to trade other derivatives (futures contracts). So here’s an example that applies the concept of options to [more…]

Commodity Options Trader Talk

Commodity options traders have their own language. Options contracts give you the option to buy futures contracts for commodities such as wheat and zinc. When talking about options, you need to know certain [more…]

To Frac or Not to Frac? Is it Even a Question?

You've likely heard about the highly controversial subject of hydraulic fracturing — referred to as fracking by today's media — at one point or another within the last few years. [more…]

The Demand for Coal in Asia

While the use of coal as an energy source may be on the decline in the United States, Canada, and other parts of the Western World, it's growing like gangbusters in Asia. [more…]

Nuclear Power and the Rise of Patterson Lake

A new discovery in northern Saskatchewan, Canada could quickly become one of the top ten uranium deposits in the world. MacArthur River, also located in Saskatchewan, is widely agreed to be the largest [more…]

Why You May Want to Invest in Solar Energy

Renewable energy stocks are on the mend, particularly in the solar space. After a few years of margin erosion, supply gluts, and hostile trade negotiations, solar investors who picked up cheap solar shares [more…]

10 Reasons to Invest in Energy

There are many reasons to invest in energy and all its related sectors and companies. Energy is always in demand; its use is expected to grow; and investing in energy gives you opportunities to shape the [more…]

Trading Energy Commodities

If you're interested in trading energy commodities (such as coil, oil, or natural gas) you'll need at least one of the following persons working for you depending on if you are making the decisions or [more…]

Identifying Top Energy Investment Resources

Energy commodity and stock prices change by the second. And the macroeconomic outlook can change just as quickly. What are crude oil prices doing today? What's the demand outlook for the next five or ten [more…]

Energy Indexes That Investors Need to Watch

You can get a sense of how a particular sector of the energy market is doing by monitoring an index that tracks the performance of several companies operating within it. For an investor, that's great information [more…]

Energy Investing For Dummies Cheat Sheet

Investing successfully in energy involves a lot of research into many different aspects of energy production and consumption. You can invest in commodities such as coal, oil, and natural gas, or you can [more…]

Natural Gas Investing: The Importance of Imports and Exports

If you’re looking to invest in natural gas, you should understand how natural gas is transported. Before liquefied natural gas (LNG) could be viably shipped, the natural gas industry was tied down to regional [more…]

Energy Investing: What Is Energy?

It’s important to define energy, because it’s important to know the nature and scope of a market you’ll be putting your hard-earned dollars into. The Merriam-Webster [more…]

Energy Investing: The Breakup of Standard Oil

If you are going to invest in oil, it helps to understand its history. In 1890, Standard Oil was producing 88 percent of the refined oil in the United States. It controlled 91 percent of the market in [more…]

Set Up Your Accounts As An Energy Investor

As an energy investor, to buy stocks, bonds, options, and mutual and exchange-traded funds, you need a brokerage account. This can be a full-service brokerage that offers you investment advice and can [more…]

Energy Investing: Commodities

Commodities are the raw materials that form the foundation of the energy market. The three classes of commodities are agricultural, energy, and metals. The bulk of these trades are made by consumers and [more…]

Energy Investing: Equities

Equity is the surplus profit of a company that’s distributed among energy investors after the firm pays off all liabilities. When you buy a company’s stock, you’re buying a share of this equity. Buying [more…]

Energy Investing: Indexes

An index is a measure of change in the value of a securities market. In energy investing, think of it as an imaginary portfolio of securities representing a certain market or specific sector of the market [more…]

Energy Investing: Exchange-Traded Funds and Mutual Funds

As an energy investor, you have more than one way to achieve an investment goal. If you’ve ever heard people say, “Buy the Dow,” they’re referring to a fund that tracks the performance of the Dow Jones [more…]

Going Long or Short in Energy Investing

When people talk about investing, including energy investing, they’re almost always talking about going long, where the goal is to buy low and sell high. But you can also profit when the price of a security [more…]

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