Posts RSS RSS

Welcome to our site

All about business and economy, technology and etc.

Introduction To Future Commodity Market

/

The price of metals, oil and currencies keep changing every second in the international market. The price is really volatile and every rise and drop yields an opportunity to make profit. The commodity market which is based upon this mechanism is getting very popular these days. In this concern the future commodity market is the most appropriate investment through which any investor can make money. The risk is always there as the chances of incurring loss is also very high. Many different commodities are traded in the future market at present which includes precious metals like gold, silver and platinum to name some, agricultural products like pulse, rise and wheat and the other important commodity is oil. This future commodity market is investor friendly as there are primarily three categories which are small, medium and large. The rate of return and the size of investment differ in all categories. Hence in a large category, huge sum of capital is required whereas for small category a small amount is sufficient.


Future commodity market has been termed as gambling by many but it is not. Looking and studying the market trend an investor can generate profit whereas in gambling the only thing required is luck. In gambling the chance of losing and winning is always 50-50 but in future commodity market, the gain or loss percentage can’t be precisely derived because everything depends upon the current international economy. Different factors like growth or recession of any specific country’s economy, predictions of learned economists, political scenario of the world, and the unemployment ratio of certain cities of the world etc. hugely affect the future commodity market. Newly made treaties between nations also have a huge impact in the future commodity market. A small quote from highly designated personals of big nations, also affect the future commodity market.

The most volatile form of trade is future commodity market but as investor can make profit in two ways ie. when the price drops, money can be made and when the price increase money can still be made. The only basic thing needed to earn when the price of any particular commodity falls or rises is good research of international market and its trends. Apart from studies, an investor needs some ability to make a quick decision and to take position in the right time. After that there is no loss but unexpected downfall in world economy may happen anytime and predictions may go wrong. Leaving all these unexpected incidents future commodity market is the most appropriate forms of investment for all kinds of investors.

1 comments:

Starting a New Business said...

Actually, only a very small percentage, usually less
than two percent, of the total futures contracts that are
entered into are ever settled through deliveries.