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In commodity option trading each contract will have a different implied volatility. Traders in commodity options have a different perception of risk in that it is bi-directional.

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What is a commodity future trading system used for?

A commodity future trading system is used for trading commodity shares electronically and automatically. The system alerts the user when they need to buy or sell.


What is a commodity trading system?

Commodity trading systems are methods to trade in the commodity market in a mechanical fashion. The system will automatically notify you when to buy and sell a commodity.


What are the essentials to a commodity trading system?

The essentials to a commodity trading system are being aware of the different commodities available, knowing risks for each option, and a good brokerage firm to trade through. If you want to trade those are the basic essentials.


Why might you be interested on commodity trading in India?

The commodity trading system in India is a trading system that trades goods such as electronics to food and they trade us valuable jewels and rich foods for it.


What exactly is bought and sold in option trading?

Option trading is the buying and selling the right and responsibility to purchase a commodity at a set price - this is called an 'Option' to buy or to sell. The commodities in question can be anything - foodstuffs, minerals, or even other investments or currencies. Many people involved in options trading are not actually interested in purchasing or selling the commodity. Instead, they plan to sell their 'option' to someone else - either someone who does want the commodity, or someone who has a complementary option, which can be used to 'close', or finish, the 'option'.


What does the Commodity Futures Trading Commission do?

The Commodity Futures Trading Commission is an independent agency which helps regulate futures and option markets. They have been commissioned into the general market since the 1970s.


Where could one get a commodity trading education?

There is not a college major especially for commodity trading and one is not required. However, most commodity trader's have a degree in finance or business. Most major universities offer these degrees. Another option is to take part in a trading commodity internship instead of or in conjunction with the college degree.


What is the best trading system for Commodity?

Newton's laws of motion.


What is meant by a commodity trading system?

A commodity trading system is a system that specializes in utilizing investment products related to commodities in order to gain a profit. This is normally done via using derivative investment products.


What are some common trends in commodity option trading?

Two common trends in commodity option trading are; 'Futures and Sell option' (buy a future contract for a certain month and sell an option contract for that same month) and 'Buy Futures and Buy Options' (buy both the future and option contracts in order to protect yourself in case one goes lower).


What does commodity trading entail?

Commodity trading entails a broad spectrum of work. Commodity trading is the trading of raw materials or finished products for the good of two sectors, or countries.


What is a commodity trading account for?

A commodity trading account is needed to trade commodities. One can use a commodity brokerage also, which would assist in the trading or purchasing of commodities.