Commodity & Currency Trading

Commodities: Commodities are basic goods that are bought and sold in the marketplace, such as oil, gold, and agricultural products. They are traded on futures markets, which are contracts to buy or sell a commodity at a certain price in the future. Commodity traders can also trade on spot markets, which involve buying and selling a commodity for immediate delivery.

Currencies: Currencies are the types of money used in different countries, such as the US dollar, Japanese yen, and Euro. Currency trading is done through brokers and banks, and traders seek to benefit from changes in exchange rates. They can do so by buying and selling currencies in short–term or long–term positions, and by using derivatives such as options and futures.

Exchange–Traded Funds (ETFs): ETFs are funds that track the performance of a particular asset, such as a commodity or currency. Investors can buy and sell ETFs on the stock exchange, making it an easy way to invest in commodities or currencies without having to trade them directly.

Spot Markets: Spot markets are used for immediate delivery of commodities or currencies. They are less liquid than futures markets, and often involve higher spreads and fees.

Options: Options are contracts that give the buyer the right to buy or sell a commodity or currency at a certain price in the future. This can be used for speculation or hedging, and can be an effective way to reduce risk.

Futures: Futures are contracts to buy or sell a commodity or currency at a predetermined price in the future. They are used for speculation and hedging, and are often used by large investors and banks.