Trading strategies commodities futures




Customer reviews
vovaldo
Use the services of this blog told me to friends who have long understood its information. Since then I have every day I come here in order to know more information about my favorite topics. It is worth noting that all the information on the site includes a user-friendly manner. Topics such sites have attracted a long time, but now I realized that there was no point in wasting time searching for relevant information, if all have been collected in one blog. Thanks to all who have shared my thoughts with me. I'll see you on the pages of this blog!
AngeL-hous-Princes
You do realize that you wrote?

Trading strategies commodities futuresHow do investors make money by trading in commodity futures?

Investors take advantage of movements in commodity prices in order to gain profits. Below is a general description of trading outright commodity futures contacts.

For instance, an investor thinks that Crude Oil can go higher due to certain fundamental or technical reasons, which he/she believes will play a vital role in effecting supply or demand of crude. He/she then decides to buy one crude oil futures contract by placing an order through the brokerage company that he/she is associated with. Let us assume the crude futures was bought at a rate of $29.10 / barrel, and the price rose to $30.10 / barrel in a couple of days time. He/she then decides to sell the futures contract at $30.10, which will fetch a profit of $1000.

At another occasion, an investor thinks that crude can go down soon. He/she then decides to sell one crude oil futures contract. Let us assume the crude oil futures was sold at $30.10, and the price dropped to $29.10 in a few days time. This will again result in a profit of $1000. In this way, investors make money both in a rising and a falling market.