When you invest in products you can buy to accept or agree to sell. The contract may be a futures contract or option on futures. The contracts are standardized and are legally binding contracts that require delivery of the commodity at a specific time for a certain sum of money at one time.
Commodities are the following:
* Gold
* Silver
* Livestock
* Corn
* Wheat
Oil *
As it convenient for people to buy and store goods such as those mentioned above, instead there is an agreement to buy and sell goods without actually transported, and physically in possession of barrels of oil, cattle, and grain silos. It began in the 19th Century United States. It is a means of commerce by the use of credit and a primitive communication system to normalize. Modern times have both advanced in the world and now commodities trading. Meanwhile, there are rules and standards in place so that buyers and sellers know exactly what they buy and sell.
As with any investment that has a high profit potential, there is also a potential for loss. The experience that some investors can absorb losses and continue to invest in commodities is not good as it can take some time before returns are realized. Before signing an agreement to buy or sell
The products are mainly traded in the U.S., London and Japan on the bottom of the commodity exchange. When it comes to futures, the exchanges are a clearing house to ensure that rules and regulations are followed, if the transaction is completed.
Product markets help maintain some control over price fluctuations, and it reduces the risk of prices falling sharply. electronic trading platforms are used in addition to the method by auction on the floor. licensed brokers to charge fees and commissions to make trades on behalf of their clients.
Trading is to invest other than raw materials, capital goods according to products, investors trade on the long side and also on the short side of the goods when they buy or sell. The strategy as a deviation and profit is the difference in price is made.
Hedger
Hedging an investor who has bought futures contracts to protect against the changing market prices. The objective is to neutralize the risk, not really making a profit. For example, carriers are often hedgers in the oil futures market because of their dependence on petroleum fuels.
Speculators
The main objective here is to make a profit. Your success and the high rate of return depends on its ability to predict when the market up or down, when to buy or sell, choose. If done correctly, can be profitable in a short time.
When you invest in commodities and currencies, contact the financial experts in New Century International to learn more about the benefits of being one of its customers. You can learn more and to invest the history of New Century International.
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