Commodities

What are commodities

Commodities are above all raw materials - gold, crude oil, natural gas, corn, meat, coffee and dozens of other raw materials, which our present-day civilization needs. Trading with  commodities is realized on world stock exchanges as with standardized contracts. E.g. on contract for crude oil has size 1000 barrels. A trader has possibility to buy commodities either with immediate delivery or with delivery in differently distant delivery on futures market. In most of commodities there is also trading with options.

Commodities and investment evaluation

On world stock exchanges are daily realized commodities for hundreds of milliards dollars, hundreds of businessmen daily establish their business position in more than one hundred of commodities. World stock exchanges are primarily intended for reinsurers and financial institutions. But most of participants are speculating traders. Todayś parquet and eletronic stock exchanges offer unlimited opportunities for persons concerned in speculative trading with various assets, to the most dynamic belong commodities and options on commodities. There exists lots of ways and techniques how to trade with commodities and options so that investment evaluation should be interesting for the investor. But it is necessary to know that trading with commodities, especially with options, is not intended for non-businessmen without necessary knowledge and experience. Despite of this there are still lot of non-businessmen attempting for doing business with options, who yield to temptation of banks and broker companies, which will enable this business by means of business platform. The reason are trading charges which banks and broker companies collect from traders regardless of the fact whether they trade successfully or not. But trading if these non-businessmen nearly always does not lead to the satisfactory investment valuation, on the contrary investors who invest on world´s commodity stock exchange with the help of professionals, having history and demonstrable results, obtain really very interesting investment valuation.