how to successfully trade commodity markets
TRANSCRIPT
The Academy of Financial Trading
How To Successfully Trade Commodity Markets
Trading explained
Any Advice or information provided by the Academy of Financial Trading is General Advice Only - It
does not take into account your personal circumstances, please do not trade or invest based solely
on this information. By viewing any material provided by the Academy of Financial Trading or using
any information or tools you agree that this is general educational material and you will not hold any
person or entity responsible for loss or damages resulting from the content or general advice provided
here by The Academy of Financial Trading, its employees, directors or fellow members. Futures,
Contracts for Difference (CFDs), Options, and spot currency trading have large potential rewards, but
also large potential risks. You must be aware of the risks and be willing to accept them in order to
invest in CFDs and leveraged forex markets. Don't trade with money you can't afford to lose. No
representation is being made that any account will or is likely to achieve profits or losses similar to
those discussed in any material provided by the Academy of Financial Trading. The past performance
of any trading system or methodology is not necessarily indicative of future results.
Risk Warning
Trading Commodity Markets – the how, why and what!
Commodity markets – soft commodities – were originally established to help farmers mitigate risk as most were futures markets
A futures contract typically involves a certain quantity of a market being purchased, pending delivery on a particular date
The investment characteristics of commodity are similar to most other securities like stocks and bonds, i.e. lower supply equals higher prices
But global economic development like the emergence of China and India as significant market players has contributed significantly to the declining availability of metals such as steel
Leveraging success from capital markets
Trading explained
Can they be traded and what’s the benefits, if any?
Although most traders wouldn’t use these markets as a means to an end, they can be used to diversify a portfolio
Because they underlying inputs that affect the prices of commodity markets are different from that, say of most stocks, they can be used to ensure relatively safe performance of any given portfolio
This is particularly true for the trend trader – the market participant who capitalises from large market swings over a given period of time
Let’s discuss this using the visual aid of a platform and actually identify the benefits of these markets!
Trading explained
Leveraging success from capital markets
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