FUTURES & COMMODITIES TRADING

A commodity pool is a type of investment pool that invests in commodities. The goal of a commodity pool is to provide investors with a way to gain exposure to a diversified range of commodities. Types of Commodity Pools: Open-end: Investors can join and leave the pool at any time. Closed-end: Investors can only join […]

Definition: A commercial trader is an individual or company that engages in the buying and selling of goods, services, or financial instruments for profit. They typically operate on a larger scale than retail traders, who buy and sell personal items for their own use. Key Characteristics: Specialized: Commercial traders specialize in trading specific commodities, products, […]

Futures Commodities Trading Futures commodities trading is a type of derivative trading that involves the purchase and sale of contracts for delivery of commodities at a specified future date and price. Commodities are tangible assets, such as precious metals, agricultural products, energy fuels, and industrial metals. Types of Futures Contracts: Cash-settled: Contracts for delivery of […]

Invisible Supply Invisible supply refers to the factors that influence the quantity of a good or service that producers are willing and able to produce. These factors include: 1. Technological Advancements: Innovations in technology can increase the quantity of a good or service that can be produced from a given amount of input. 2. Availability […]

Commodity Swap A commodity swap is a type of over-the-counter (OTC) derivative contract that exchanges the payments for the delivery of one commodity for the payments for the delivery of another commodity. How Commodity Swaps Work: Underlying Commodities: Two commodities are selected as the underlying assets for the swap. Notional Amount: A notional amount, typically […]