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  • Commodity Market

    What does commodity market means? What are different commodities being traded? Does all of this commodities can be traded with binary options?

  • #2
    Commodity markets are markets where primary or raw products are exchanged. Raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.

    Some commodities being traded are:
    Agricultural (grains, and food and fiber), Livestock and meat, Energy (e.g. crude oil, natural gas, Ethanol etc.), Precious metals ( e.g. Gold, Platinum, Silver, Palladium), Industrial metals (e.g. Copper, Lead, Zinc, Tin, Al, Al alloy, Nickel, Cobalt, etc.), Rare metals (e.g Germanium, Magnesium, Manganese, etc) and other commodities like rubber, Palm Oil, Wool, Polypropelyne and Polyethylene.

    Not all of them can be traded with binary options it depends on the market handled by your broker site.

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    • #3
      Originally posted by MrSmirnenski
      Commodity markets are markets where primary or raw products are exchanged. Raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts. Some commodities being traded are: Agricultural (grains, and food and fiber), Livestock and meat, Energy (e.g. crude oil, natural gas, Ethanol etc.), Precious metals ( e.g. Gold, Platinum, Silver, Palladium), Industrial metals (e.g. Copper, Lead, Zinc, Tin, Al, Al alloy, Nickel, Cobalt, etc.), Rare metals (e.g Germanium, Magnesium, Manganese, etc) and other commodities like rubber, Palm Oil, Wool, Polypropelyne and Polyethylene.

      Not all of them can be traded with binary options it depends on the market handled by your broker site.

      This one is a good explanation already.

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      • #4
        Put simply, commodities are the raw materials humans use to create a livable world. While Commodity markets are markets where primary or raw products are exchanged. Humans use energy to sustain themselves, metals to build weapons and tools, and agricultural products to feed themselves. These — energy, metals, and agricultural products — are the three classes of commodities, and they are the essential building blocks of the global economy.
        Commodities generally meet the following criteria:
        • Tradability: The commodity has to be tradable, meaning there needs to be a viable investment vehicle to help you trade it. For example, a commodity is included if it has a futures contract assigned to it on one of the major exchanges, or if a company processes it, or if there’s an ETF that tracks it.


        Uranium, which is an important energy commodity, isn’t tracked by a futures contract, but several companies specialize in mining and processing this mineral. By investing in these companies, you get exposure to uranium.
        • Deliverability: All the commodities have to be physically deliverable. Crude oil is included because it can be delivered in barrels, and wheat is included because it can be delivered by the bushel.
        • Liquidity: Every commodity in this learning center has an active market with buyers and sellers constantly transacting with each other. Liquidity is critical because it gives you the option of getting in and out of an investment without having to face the difficulty of trying to find a buyer or seller for your securities.

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        • Xenon Maestro
          Xenon Maestro commented
          Editing a comment
          stockmarket, your explanation is better and much simpler that is why I love it!

      • #5
        Commodities are a range of primary resources that can be traded in quantifiable amounts and have minimum quality standards. The establishment of such basic parameters means that the commodities can be traded in large volumes or numbers in international commodity exchanges, with traders being reasonably certain that the commodities being traded are not deficient.

        Commodities are traded on the commodity market. This market is comprised of a number of international commodity exchanges, notable ones being the Chicago Mercantile Exchange, the New York Mercantile Exchange and the London Metal Exchange. Officials of each exchange act to regulate transactions, amongst their responsibilities being the duty to ensure that the commodities traded meet minimum quality and quantity standards. The exchanges themselves are regulated by the appropriate national regulatory bodies.


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        • #6
          Originally posted by Arnou
          Commodities are a range of primary resources that can be traded in quantifiable amounts and have minimum quality standards. The establishment of such basic parameters means that the commodities can be traded in large volumes or numbers in international commodity exchanges, with traders being reasonably certain that the commodities being traded are not deficient. Commodities are traded on the commodity market. This market is comprised of a number of international commodity exchanges, notable ones being the Chicago Mercantile Exchange, the New York Mercantile Exchange and the London Metal Exchange. Officials of each exchange act to regulate transactions, amongst their responsibilities being the duty to ensure that the commodities traded meet minimum quality and quantity standards. The exchanges themselves are regulated by the appropriate national regulatory bodies.

          Nice explanation!

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          • #7
            Are there universal commodity regulatory board that regulates the world's stock market and commodities?

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            • #8
              Originally posted by Ben
              Are there universal commodity regulatory board that regulates the world's stock market and commodities?
              We will try to look deeply into it Ben, presently I don't think there is a universal commodity regulatory board for the entire planet, I guess for some particular region they have but not a worldwide thing.

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              • #9
                Ben I guess there is no universal organizing body that regulates the commodity market, never heard of any except the OPEC or the Organization of the Petroleum Exporting Countries they regulate and have agreed to some rules that would take effect with their business or things that would matter on oil production and oil products.

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                • #10
                  which broker has the most commodities available?

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                  • #11
                    A physical or virtual marketplace for buying, selling and trading raw or primary products. A commodity is food, metal, or another fixed physical substance that investors buy or sell.
                    Basically, there is little difference in a commodity from one producer to another; for example, a barrel of oil is a barrel of oil regardless of the producer. In contrast, electronic equipment is not a commodity, and the quality can be completely different, depending on the producer.
                    http://maxcommodity.com/free-mcx-tips-trial/

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                    • #12
                      Originally posted by BlazingPuffy View Post
                      which broker has the most commodities available?
                      i think it's 10option. the last time i check they have 10 choices.

                      Comment


                      • #13
                        If you still need to understand commodity market more then, you can continue to read on:

                        Commodity Market --
                        A physical or virtual marketplace for buying, selling and trading raw or primary products. For investors' purposes there are currently about 50 major commodity markets worldwide that facilitate investment trade in nearly 100 primary commodities.

                        Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural resources that must be mined or extracted (gold, rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn, wheat, coffee, sugar, soybeans, pork, etc.)


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