Welcome to Commodity Investing Online
Commodity Contract Broker Dealer Article
This is a selection made from among articles on Commodity Contract Broker Dealer. For a permanent link to this article, or to bookmark it for future reading, click here.
Who Is Investing in Commodities?
from: Caterina ChristakosThe easiest answer for this question is: anyone who does not mind being in a riskier market. In fact, the commodities market is reputed to be so volatile that fortunes can be made or lost in a matter of minutes or hours, if you don't know what you are doing. To get a better understanding of investing in the commodities market, let us take a look at some of the basics.
What is a commodity?
A commodity is anything that can be bought or sold. Examples of a commodity can include oil, gold, oranges and currency. When you invest in commodities, you are basically betting on what the market will do. You will bet that the price of oranges will rise or that the value of the dollar will fall.
Investment strategies in commodities
Most financial experts do not recommend investing anything in the commodities market that you can not afford to lose. It is not the investment type for someone who wishes for a safe investment for their retirement account, unless you put your money into a managed account.
However, if you do not mind higher risk in return for the greater chance of higher returns, commodities might be a good option. Commodities are a great way to use a portion of your portfolio in higher risk/higher return investment, but should never be used as a major segment of your portfolio.
Safe investing in commodities
If you really want to take your turn at commodities investment, but want to minimize your risk, take a look at commodities funds. Because these funds include a mixture of different commodities, the risk may be minimized by the very nature of the portfolio.
If it is riskier, why would anyone invest in commodities?
The return, when someone wins in the market, can be extremely high. There have been a number of millionaires made through commodities trading and will do so again in the future.
In addition, it has long been understood that the commodities market is a great hedge against inflation. When inflation unexpectedly hits, the commodities funds tend to do a lot better.
Finally, commodities are always in demand. Gold, oil and currency will always have a market because we need them. They will never become outdated and the demand will never disappear.
Investing in commodities may be the perfect investment for anyone who doesn't mind using a small portion of their portfolio in higher risk activities in order to achieve a higher reward. If you do not have the time to follow markets and industries on a day to day or hour to hour basis, checking out the commodities funds are the next best thing.
Caterina Christakos is an experienced investor and instructor with World Capital Institute. Ever imagined an exciting career as a stock or commodities broker. Make the dream a reality here: http://www.worldcapitalinstitute.com
Article Source: http://EzineArticles.com/?expert=Caterina_Christakos
Commodity Contract Broker Dealer News
SOFTS-Sugar up as delays in Greece debt talks weigh - Reuters
SOFTS-Sugar up as delays in Greece debt talks weigh Reuters US cocoa futures were in an inside session dominated by position rolling out of the March contract ahead of first notice day Feb. 15, dealers said. "All these markets are in their roll period right now," said Drew Geraghty, commodity broker at ICAP ... |
SOFTS-US jobs data stokes wide market advance - Reuters
SOFTS-US jobs data stokes wide market advance Reuters * US jobs report provides spark for complex * Expected sugar surplus to cap gains (Add CFTC data in last 2 paragraphs) By Rene Pastor and Alison Birrane NEW YORK/LONDON, Feb 3 (Reuters) - Soft commodity futures sped higher on Friday lifted by a US jobs ... |
MF Global: Uncertain futures - Financial Times
 Financial Times | MF Global: Uncertain futures Financial Times Almost three months after the spectacular collapse of the broker-dealer, former customers such as Mr Kasouf, as well as farmers, grain transporters and small manufacturers, are still waiting to find out the whereabouts of $1.2bn in missing funds. |
Risk and Energy Risk commodity rankings 2012: metals - Risk.net
 Risk.net | Risk and Energy Risk commodity rankings 2012: metals Risk.net In October last year, the US Commodity Futures Trading Commission (CFTC) finalised a rule limiting the size of positions dealers can take in 28 commodities, including copper, gold, silver, palladium and platinum. Specifically, the rule sets two limits, ... |
SOFTS-Cocoa steadies, eyes on Ivory Coast auction - Reuters
 Times LIVE | SOFTS-Cocoa steadies, eyes on Ivory Coast auction Reuters ICE coffee and raw sugar edged higher in line with firmer commodities markets. Dealers said the cocoa market had priced in the bearish impact of Ivory Coast's planned forward sales, in which people sell futures as they buy physical cocoa. Cocoa stays up |