Currency Trading Information Channel
Commodity Trading - Advantages and Disadvantages
What Is Commodity Trading?
Commodity futures markets allow commercial producers and commercial consumers to offset the risk of adverse future price movements in the commodities that they are selling or buying.
In order to work a futures contract must be standardized. They must have a standard size and grade, expire on a certain date and have a preset tick size. For example, corn futures trading at the Chicago Board of Trade are for 5000 bushels with a minimum tick size of 1/4cent/bushel ($12.50/contract).
A farmer may have a field of corn and in order to hedge against the possibility of corn prices dropping before the harvest he might sell corn futures. He has locked in the current price, if corn prices fall he makes a profit from the futures contracts to offset the loss on the actual corn. On the other hand, a consumer such as Kellogg may buy corn futures in order to protect against a rise in the cost of corn.
In order to facilitate a liquid market so that producers and consumers can freely buy and sell contracts , exchanges encourage speculators. The speculators objective is to make a profit from taking on the risk of price fluctuation that the commercial users do not want. The rewards for speculators can be very large precisely because there is a substantial risk of loss.
Advantages of commodity trading
Leverage. Commodity futures operate on margin, meaning that to take a position only a fraction of the total value needs to be available in cash in the trading account.
Commission Costs. It is a lot cheaper to buy/sell one futures contract than to buy/sell the underlying instrument. For example, one full size S&P500 contract is currently worth in excess off $250,000 and could be bought/sold for as little as $20. The expense of buying/selling $250,000 could be $2,500+.
Liquidity. The involvement of speculators means that futures contracts are reasonably liquid. However, how liquid depends on the actual contract being traded. Electronically traded contracts, such as the e-mini's tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread.
Ability to go short. Futures contracts can be sold as easily as they are bought enabling a speculator to profit from falling markets as well as rising ones. There is no 'uptick rule' for example like there is with stocks.
No 'Time Decay'. Options suffer from time decay because the closer they come to expiry the less time there is for the option to come into the money. Commodity futures do not suffer from this as they are not anticipating a particular strike price at expiry.
Disadvantages of commodity trading
Leverage. Can be a double edged sword. Low margin requirements can encourage poor money management, leading to excessive risk taking. Not only are profits enhanced but so are losses!
Speed of trading. Traditionally commodities are pit traded and in order to trade a speculator would need to contact a broker by telephone to place the order who then transmits that order to the pit to be executed. Once the trade is filled the pit trader informs the broker who then then informs his client. This can take some take and the risk of slippage occurring can be high. Online futures trading can help to reduce this time by providing the client with a direct link to an electronic exchange.
You might find a truck of corn on your doorstep! Actually, most futures contracts are not deliverable and are cash settled at expiry. However some, like corn, are deliverable although you will get plenty of warning and opportunity to close out a position before the truck turns up.
Tim Wreford operates Online Futures Trading, a website that provides information and resources for traders. Tim also provides an article detailing the development of a day trading system, the results of which are updated daily on the site.
MORE RESOURCES updated Fri. May / 24 / 2019
Asia markets mixed as investors worry over US-China trade tensions CNBC
Asia Pacific markets were mixed on Friday as investors remained worried over trade tensions between the United States and China.
Future Returns: The Risk and Reward of Foreign Currency Exchange Markets Barron's
While most advisors recommend leaving the foreign currency exchange market to the pros, individual investors are increasingly entering the market as ...
Never lose hope in currency trading business Rocky Mountain Collegian
Sponsored *Content*: Never lose hope in currency trading business A good trader will know about the right kind of performance in the business. It is very.
The Trade War's Grip on Currency Markets Tightens Bloomberg
Trade tensions between the U.S. and China are starting to pull foreign-exchange markets into the arena. Yet far from embracing their currencies as a weapon, ...
Europe hits 5 banks with $1.2 billion fine over currency trading cartel CNN
London (CNN Business) Five global banks have been slapped with a €1.07 billion ($1.2 billion) fine in Europe for running cartels that coordinated currency ...
Venezuela loosens currency exchange controls to allow forex trading Reuters
CARACAS (Reuters) - Venezuela will allow local banks to open foreign currency trading platforms as part of a loosening of the OPEC nation's exchange controls ...
Short Aussie, Long Yen Is the Hot New FX Bet for Trade War Bloomberg
Short Australia's risk-sensitive currency against the haven yen. That is emerging as one popular currency trade as investors look to profit from the U.S.-China ...
Trade currency pairs: your guide to trade currency pairs Capital.com
Trade currency pairs CFDs, shares, commodities, cryptocurrencies and indices through Capital.com's award-winning platform. No commission. FCA and CySEC ...
China shares tumble amid trade jitters CNBC
Treasury Secretary Steven Mnuchin told CNBC that a trip to Beijing to resume trade negotiations has not been scheduled yet, reducing hopes of a speedy ...
A Guide to Currency Trading for Complete Beginners • Benzinga Benzinga
Learn more about forex trading, also known as currency trading. Discover its definition, examples, how it works and how to get started trading today.
South Korea Holds Emergency Meeting on Startling Currency Drop Bloomberg
South Korea warned traders that the won's recent decline is excessive, becoming the latest Asian central bank to step up defense of its currency as the ...
Shaving Milliseconds Off Currency Trades Could Make Singapore Billions Bloomberg
Follow Bloomberg on LINE messenger for all the business news and analysis you need. Singapore is grabbing an opportunity measured in milliseconds to win a ...
Refinitiv currency trading and data terminals face ‘major incident’ Financial Times
Refinitiv's foreign currency trading platform and financial data terminal both suffered a serious incident on Tuesday, a day after volatility swept across worldwide ...
China's currency is sending a warning signal about the trade war CNBC
China's currency has been an important barometer for progress in U.S.-Chinese trade talks, and right now it's signaling things aren't going well.
ZedXe: Estonia-Based Crypto Exchange Reinforced with AI Management Tools for a World-Class Trading Experience - CryptoGlobe
ZedXe: Estonia-Based Crypto Exchange Reinforced with AI Management Tools for a World-Class Trading Experience CryptoGlobe
ZedXe.com, a digital currency trading platform incorporated and licensed by Estonia Financial Authority, is navigating the shift to a highly-secure and Artificial ...
The Sure Strategy for FOREX Trading SundiataPost
By Dorrow Green. All you need is to know as minimum Forex basic information,. There are some ways how you can do it: 1) Learn Forex by yourself, here are ...
Forex Trading Opportunities for the Week Ahead [Video] FXStreet
About the Author Sam Eder is a currency trader and author of "The Definitive Guide to Developing a Winning Forex Trading System" and "The Advanced Fo.
How to Start a Currency Trading Business Virtual-Strategy Magazine
Thinking on how to start a currency trading business? Then you are in the right place. Currency trading remains the largest financial market in the world. It's.
Using the COT Report in Forex Trading DailyFX
Learn how to trade forex using the Commitment of Traders Report. View top trading strategies and how to do COT report analysis.
Huge Impact of Forex Trading Market in Globally to 2025 |Topmost Key Vendors NSFX, MB Trading, FXCM, FXDD, HotForex, AC Markets, eToro, TTCM Traders Trust, Interbank FX, Forex.com - Global Market Research
Huge Impact of Forex Trading Market in Globally to 2025 |Topmost Key Vendors NSFX, MB Trading, FXCM, FXDD, HotForex, AC Markets, eToro, TTCM Traders Trust, Interbank FX, Forex.com Global Market Research
The foreign exchange market is the “place” where currencies are traded. Currencies are important to most people around the world, whether they realize it or not ...
Forex Trading: USDCAD Is Facing Buyers and Sellers' War at $1.3472 level Inside Bitcoins
Sideways movement may continue should the Bears continue to defend the $1.3472 level and the Bulls defend $1.3330 level. In case the Bulls break up the ...
Why forex trading isn't everyone's cup of coffee SowetanLIVE Sunday World
You should only consider forex trading once your financial affairs are in order, “and only as an alternative to gambling”, says an investment expert. Trading on ...
The new risk proxy for currency traders isn’t the one you’d expect MarketWatch
When investors duck for cover in times of market turmoil or dial-up their risk appetite when things are rosy, there is a new currency of choice — and it...
Financial conduct regulator warns public about forex-trading charlatans Business Day
Charlatans dangling carrots of unbelievable returns for trading foreign exchange (forex) on your behalf have been thrust into the spotlight by the Financial ...
US Dollar Price Outlook in EUR/USD, GBP/USD and USD/CAD DailyFX
The US Dollar has had a wild past 24 hours; first pushing up to a *fresh* two-year-high followed by an aggressive reversal after the release of yesterday's PMI data ...
Blackstone's Refinitiv Outage Upends Currency Trades Bloomberg
Technological problems at Refinitiv, the former financial and risk business of Thomson Reuters, have disrupted some currency markets, traders said.
Daily Currency Trading Tip For May 22 - Short Pound, Short Australian Dollar-Yen, Buy Gold - Exchange Rates UK
Daily Currency Trading Tip For May 22 - Short Pound, Short Australian Dollar-Yen, Buy Gold Exchange Rates UK
Our guest analyst, Marshall Gittler, makes these three trading recommendations for trading on May 23rd. Stay short GBP. It's hard to imagine that things could get ...
How to Start Forex Trading on an Android Phone using MT4/MT5 App FXDailyReport.com
The forex exchange market is the largest financial market in the world and is open for trading online, every week day. To access this market, traders must ...
Why forex trading is an ideal home business venture Business Leader
Foreign exchange trading is an increasingly popular way to make money while working from home, and with application, discipline and hard work it can be ...
23-year-old making handsome profits from forex trading Daily Nation
Patience, grit and fiscal discipline are key to success in the field, Paul Mugenda says.
ATP backs ethical currency trading code | News | IPE IPE.com
Danish pension fund ATP has signed up to the FX Global Code, a scheme created by the Bank of International Settlements (BIS) and central banks outlining ...
Facebook holds talks with traders to create new currency Irish Times
Secretive unit of the social media company working for over a year to develop currency.
What trade war? China stocks jump after tariff hike CNBC
The U.S. raised tariffs on $200 billion worth of Chinese goods to 25% at midnight ET Friday — but Chinese stocks still rallied.
Short Aussie, long yen is the hot new currency bet for trade war - Business News The Star Online
SINGAPORE: Short Australia's risk-sensitive currency against the haven yen.
Integral Reports falling Institutional Forex Trading Volumes CryptoVibes
Integral, an institutional trading platform provider, recently published its monthly trading volumes for April 2019. This time, the numbers have fallen.
The Best Forex Trading Tools: A Checklist for All Forex Traders Benzinga
FOREX.com is one of the world's largest forex brokers. Account holders get competitive pricing, award-winning customer *service*, actionable data and powerful ...
Islamic currency trade gaining popularity, but has to follow rules Gulf Times
Last week's launch of an Islamic trading account by one of the world's largest online currency and multi-asset trading platforms, eToro, has quickly filled.
How to Calculate Pips in Forex Trading: A Guide for Beginners Benzinga
FOREX.com is the largest forex broker for US traders. You will get competitive pricing, award-winning customer *service*, actionable data, and powerful trading ...
Finance IT Infrastructure Firm Partners With Institutional Crypto Exchange Seed CX Cointelegraph
Trading IT infrastructure company Avelacom has partnered with digital currency exchange Seed CX, according to a press release published on May 23.
Rupee Edges Higher Against Dollar NDTV News
The rupee ticked higher by 5 paise to 69.67 against the US dollar on Wednesday amid weakness in the greenback and easing crude oil prices. Strong foreign ...
Currency Trading Price Targets For the US Dollar and Euro See It Market
The US Dollar Index looks like it is headed back towards the 100 level. Guy Cerundolo discusses his analysis and price targets for the greenback.
Venezuela Lifts Controls on Banks Trading Foreign Currency Bloomberg
In the boldest sign yet that Venezuela is abolishing its complex web of financial controls, local banks will be able to begin trading foreign currency. The move will ...
How AI Is Shaping Forex Trading : Tech Science World Report
Here's how AI is shaping Forex trading. The 21st century is rapidly becoming defined by the emergence of intelligent machines powered by impressive software, ...
Facebook reportedly held talks with Mark Zuckerberg's archrivals the Winklevoss twins for a partnership o.. - Business Insider
Facebook reportedly held talks with Mark Zuckerberg's archrivals the Winklevoss twins for a partnership o.. Business Insider
Mark Zuckerberg may be ready to forgive the Winklevoss twins, who sued him for stealing their idea of a social network. Facebook has held talks wit...
Voice over Foreign-exchange trading is finally turning digital The Economist
THE FOREIGN-EXCHANGE (FX) market is as opaque and old-fashioned as it is enormous. Most of its $5trn of daily trading happens “over-the-counter” (OTC), ...
Is Crypto-Currency Trading Exempt From GST/HST? A Canadian Tax Lawyer's Analysis - Tax - Canada - Mondaq News Alerts
Is Crypto-Currency Trading Exempt From GST/HST? A Canadian Tax Lawyer's Analysis - Tax - Canada Mondaq News Alerts
To date, the Canada Revenue Agency treats Bitcoin—and crypto-currencies in general—as a commodity for tax purposes. Canada Tax Rotfleisch & Samulovitch ...
Forex Trading – What You Need to... Forex Crunch
Forex trading is popular with many people because you do not need to make a large investment to get started. However, while it's certainly possible to.
Kenya: CMA licenses second non-dealing online forex trading broker - Journalducameroun.com - English
Kenya: CMA licenses second non-dealing online forex trading broker Journalducameroun.com - English
Published on 13.05.2019 at 14h21 by APA News. Share. The Board of the Capital Markets Authority (CMA) on Monday announced they have approved the grant ...
XTB Reports Significant Drop in CFD Currency Trading in Q1 2019 Finance Magnates
XTB continues to feel the pinch of the recently-implemented regulations from ESMA, as the firm has reported a drop in revenues in the first quarter of 2019.
GBP/USD suffers with May’s resignation Forex Crunch
The end of Theresa May's era begins at the end of May. The PM has just announced she will step down as Conservative Party leader on June 7th. The decision ...
S'pore aims to cut sub-second lag to boost forex trading The Straits Times
Singapore is grabbing a sub-second opportunity to win a bigger slice of the world's US$5.1 trillion (S$7 trillion) a day foreign exchange market.. Read more at ...
Investors may come up short in Oasis trading case Sarasota Herald-Tribune
Investors in what federal regulators are calling a locally based foreign currency trading scheme may not get much of their money back.The Commodity Futures ...
Gold Prices Rise as US Dollar Fails to Capitalize on Market Selloff DailyFX
Gold prices rose as dismal US PMIs derailed the Dollar's ability to capitalize on haven demand amid risk aversion. Durable Goods Orders data may bring more ...
Crypto-Currency Exchange Loses $40M via Hackers FTF News
Binance is reeling from a hacking on May 7 while a new poll shows strong investor interest in crypto-currencies.
USD/CAD - Canadian Dollar Ignores Oil Price Collapse Baystreet.ca
Canadian dollar traders ignore this week's collapse in oil prices. The currency rejected attempts to drive it below support, and it has been inching higher despite ...
Flash Crash Fears Haunt Traders Ahead of 10-Day Japan Break Bloomberg
Japan's retail investors have propelled their net long yen positions against the dollar to near a record ahead of the nation's extended Golden Week holidays.
Oil Price Outlook: Crude Crushed – Trade Levels to Know for WTI DailyFX
Crude oil prices have plummeted more than 11% form the yearly high with the sell-off now eyeing initial support targets. Here are levels that matter on the WTI ...
EUR/USD: What's In The Driving Seat As Correlations With Relative Rates/Yields Have broken Down -... - Forex Crunch
EUR/USD: What's In The Driving Seat As Correlations With Relative Rates/Yields Have broken Down -... Forex Crunch
EUR/USD dipped to a new 2019 low only to bounce back. What's next? Here is their view, courtesy of eFXdata: Societe Generale Research discusses ...
5 features that describe Gemini virtual currency exchange Cryptoline News
Gemini virtual currency exchange has set a new standard in the cryptocurrency market due to its openness to work with regulators. Also, the exchange has been ...
Pound to Euro exchange rate forecast: Sterling falls due to UK politics Pound Sterling Forecast
In today's pound to euro exchange rate forecast we look at the last 14 trading days, during which time the pound has devalued daily against the euro. At the start ...
Robinhood launches Bitcoin and digital assets trading in New York Forex Crunch
Trading of Bitcoin and other digital assets went live on the platform on Thursday. “Currently, you can invest in seven cryptocurrencies on Robinhood.
Currency Corner: why we all need to keep a close eye on King Dollar MoneyWeek
Dominic Frisby looks at the price of the most important currency in the world – the US dollar – and where it's likely to be by the time Donald Trump's term as ...
BRL Chart Analysis: Bearish Outlook Ahead of CPI Data, Trade Wars DailyFX
The Brazilian Real may find itself in pain during tomorrow's trading session ahead of Brazilian inflation data and souring US-China trade relations.
Near-term Trade Setups in USD/CAD and AUD/USD DailyFX
An update on near-term trade setups we've been tracking in Loonie (USD/CAD) and Aussie (AUDUSD). These are the targets and invalidation levels that matter ...
British Pound Trading A Tad Lower In The Morning Session Action Forex
For the 24 hours to 23:00 GMT, the GBP slightly declined against the USD and closed at 1.2663, after Prime Minister Theresa May's second Brexit referendum ...
Step-By-Step Guide How to Register Forex Trading Account FXDailyReport.com
Regardless of which type of forex account you choose, installing and logging in is almost as easy as with any other software. First, you should be aware of how ...
Loonie Trading Slightly Lower In The Morning Session Action Forex
For the 24 hours to 23:00 GMT, the USD rose 0.30% against the CAD and closed at 1.3473. In the Asian session, at GMT0300, the pair is trading at 1.3476, with ...
Turkey's central bank steps in after the lira nosedives to an eight-month low CNBC
The currency has been ranked the worst-performing in emerging markets for several consecutive weeks.
Plymouth student makes a fortune trading in foreign currencies Plymouth Live
A 20-year-old student from Plymouth has made so much cash trading foreign currencies he's walking around in designer gear and making plans to buy a ...
Oil Prices Slide – IMF Fires Warning Shot for US & China Consumers DailyFX
The weakening outlook for global growth may continue to drag on the price of oil amid the ongoing trade dispute between the US and China, the two largest ...
Trading Bots: Are They a Force for Good? Cointelegraph
Trading bots have become a staple of today's markets — especially in the 24-hour cryptocurrency industry. But while some have gained popularity by enabling ...
Fears Of Trade Wars Pushed Markets To Important Levels FX Empire
Markets are losing faith in the early conclusion of a trade deal, which provokes a decline in stock markets in Asia and in Europe, and also supports the demand ...
New York says cryptocurrency exchange Bitfinex hid $850-million loss Los Angeles Times
New York's top cop said operators of one of the world's biggest cryptocurrency exchanges and digital coins engaged in a cover-up to hide the “apparent loss” of ...
Rand trading weaker after a dovish SARB IG
The South African Reserve Bank (SARB) has kept lending rates unchanged (as expected) at the end of the Monetary Policy Committee (MPC) meeting.
The Twilight Trading Hour Strikes Currency Markets Again The Wall Street Journal
There is a fragile spot in the $5.1 trillion currency market: early morning in Asia. This one- to two-hour period when U.S. traders are heading home—but market ...
Currency Outlook April 29 - May 3 - Economic Data Review, Foreign Exchange Rate Forecasts & Predictions - Exchange Rates UK
Currency Outlook April 29 - May 3 - Economic Data Review, Foreign Exchange Rate Forecasts & Predictions Exchange Rates UK
The Pound to Euro exchange rate is +0.06% higher @ €1.15909 today. - The Pound to US Dollar exchange rate is +0.02% higher @ $1.29958 today. - Analyst ...
Circle CEO Jeremy Allaire: Crypto Space Needs Regulatory Certainty Cointelegraph
The CEO of CIrcle, Jeremy Allaire, has said that the crypto space needs regulatory certainty and the current definition of crypto is too broad.
Exchange Rate Forecasts 2019 | 2020 | 2021 - April / May 2019 Exchange Rates UK
Currency forecasts and exchange rate predictions from financial institutions Berenberg Bank, DNB Markets, Lloyds Bank, CIBC, UBS and Scotiabank for the ...
3 Major Global Themes and How Best to Trade Them DailyFX
With numerous global macroeconomic and geopolitical themes at play, here are some of the most pertinent and the best ways to trade them.
Forex trading – what are the best currencies to trade? Capital.com
Currencies are priced in other currencies, and all major denominations are quoted in “cross rates” against each other. Traders may choose a fairly predictable ...
Are forex trading signals for you? ForexLive
What you need to know about signals from UBCFX Foreign exchange or forex is defined as the exchange of a nation's currency for that of another is. Overall, the ...
Collapsed Cryptopia Founder Wants You to Put Funds on His New Exchange CoinDesk
Because there are, apparently, second acts in crypto, the creator of the defunct Cryptopia exchange is trying again with a new exchange product called ...
The 9 Best Forex Trading Courses - Forex Trading Training • Benzinga Benzinga
Forex trading courses can be the make or break when it comes to investing successfully. Read and learn from Benzinga's top training options.
Best Forex Trading Software Benzinga
Forex trading is an around the clock market. Benzinga provides the essential research to determine the best trading software for you in 2019.
Forex trading: Understanding account types and differences ForexLive
Instaforex: See what different account options are available to FX traders There are a number of different account types available in the FX sphere and this article ...
Japan’s Golden Week could provide opportunities for currency traders, but business as usual for bond investors - MarketWatch
Japan’s Golden Week could provide opportunities for currency traders, but business as usual for bond investors MarketWatch
For yen traders, fluctuations in the currency have traditionally been correlated with equity markets and broad economic sentiment. As appetite for assets ...
What is Forex Trading? Complete Beginner’s Guide Blockonomi
The foreign exchange market (forex) for international currencies is the largest and most liquid market in the world. According to the Bank of International ...
FX Trading - Currency Trading FXTM
Discover the details of foreign exchange, currency trading, currency pairs, forex market hours, forex trading fundamentals, trading signals and more. | FXTM ...
Citi Joins UBS in Setting Up Singapore Currency Trading Hub Bloomberg
Citigroup Inc. is planning to join UBS AG with an electronic currency trading and pricing platform in Singapore, setting up systems to boost liquidity in Asia's ...
Best Forex Trading Mobile App Benzinga
FOREX.com is one of the the largest forex broker for traders. You will get competitive pricing, award-winning customer *service*, and powerful trading platforms to ...
Currency Traders Should Get Ready for Big Move in the Dollar Bloomberg
Currency traders should brace for a large move in the dollar, if past periods of low volatility are a guide.
Brexit is a nightmare for currency traders CNN
The Brexit deal negotiated by Prime Minister Theresa May will almost certainly be voted down by UK parliament on Tuesday. Currency traders are trying to figure ...
Bitcoin Remains On the Defensive With Price Below $8K CoinDesk
BTC has traded in a narrowing price range over the last 48 hours, aborting the immediate bullish view put forward by Sunday's double-digit gains. A range ...
Fortune 500 Currency Trading Moneyshow.com
Tracking the moves of the big players can put us on the right side of market's turns, write.
FX Futures: How Currency Trading Revolutionized Finance TheStreet.com
Financial futures today represent 90 percent of global futures trade, with currency futures being the first financial futures product to trade 45 years ago. Today's ...
Proper Forex trading plans are never too aggressive AZ Big Media
Most control must come to risk management. There will be a good trading performance if you can handle the trading performance with that. In this article, we are ...
Trading the 24-Hour Forex Market DailyFX
The forex market gives traders the unique advantage of 24 hours a day and five days a week access. We cover the basics of 24-hour forex trading.
How Does Forex Trading Work? FinSMEs
Forex trading is one of the most profitable money-making options — a successful trader can double their investment in 6 months. However, it is also extremely ...
How to Trade Forex - and Is It Worth the Risk? TheStreet.com
Trading currencies is an enormous part of the world market. Here's how it works and whether it's worth the risk....VLKAF.
The Best Tips for Forex Trading in 2019 FinSMEs
Welcoming the New Year with a goal to increase one's financial wealth is always a good thing. Whether it's investing in assets like Forex, company shares, and ...