Commodities Trading For Beginners - All You Need to Know

Commodities Trading For Beginners - All You Need to Know

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Whether you want to know more about Commodities Trading or any other topics, Earn2Trade has you covered!
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Generally, the best way to describe a commodity is as a naturally occurring or an agricultural product that you can physically trade. In effect, they’re raw material. The term encompasses many different things from precious metals such as gold to specific products such as coffee, wheat, corn.

Exchanges generally sort commodities into specific groups based on common characteristics. These include:

Energies
Crops
Livestock
Base (or industrial) metals
Precious metals
That is not the complete list, of course, just some of the most popular ones. There are many more to choose from.

In the minds of many people, there is a big difference between stocks/shares and commodities. In reality the difference is minimal. You are simply buying and selling individual “items” whether these are precious metals, shares, coffee, oil or gas. While some of the more traditional commodities markets may still offer a physical area in which to trade, the vast majority of exchanges today are “virtual.” They also arrange the physical delivery itself away from the exchange.

0:00 Music Intro
0:13 Intro
0:50 Disclaimer
1:07 What are commodities?
2:34 Characteristics
4:07 How commodities work
6:07 The types
9:07 Commodities futures investors
9:56 Futures trading
12:23 Advantages
13:45 Disadvantages
14: 45 Notable aspects
15:42 Final thoughts