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What is the Commodities futures market?
The Commodities Futures Market is a Data Service Center. The data of Oil, Natural Gas, Gold, Copper, Coffee, Corn, Soybeans, Sugar, Wheat and Lumber products are all recorded and available to the public to see how well or bad the economy is doing with each category.
What is the stock market symbol for Silver futures?
There is none as Silver (a metal) is not a stock from a corporation.Wow. Like most things today that's technically correct, but useless.I believe that what you are after are the futures or options symbols.The symbols are different depending on which commodities exchange you look at. For the current contract, Dec 09, the COMEX ticker is SIZ09.CMX. Each contract has an expiration month, but not all months have a contract. Each month has a letter associated with it, not necessarily related to any of the letters in the name of the month. The letter for Dec is Z, for Jan it is F, Feb is G, May is K and so on. So the ticker for May 2010 silver is SIK10.CMXYou can find quotes here:http:/wwwzperiodzcmegroupzperiodzcom/trading/metals/precious/silverzperiodzhtmlSilver options (options on futures contracts) have similar ticker criteria.
Which accurately explains the difference between the stock market and the commodity market?
ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market. APEX
What does commodity market mean?
A commodity market is a marketplace where raw or primary products are traded. These commodities are typically categorized into two types: hard commodities, which are natural resources like oil and gold, and soft commodities, which are agricultural products like wheat and coffee. The trading can occur on physical exchanges or through futures contracts, allowing buyers and sellers to hedge against price fluctuations. Commodity markets play a crucial role in the global economy by facilitating price discovery and providing liquidity.
What Commodity futures contracts can be bought and sold on the open market for which reason?
Commodity futures contracts that can be bought and sold on the open market include those for agricultural products (like corn, soybeans, and wheat), energy resources (such as crude oil and natural gas), and metals (like gold, silver, and copper). These contracts are primarily traded for hedging against price fluctuations, speculating on future price movements, and diversifying investment portfolios. Investors and producers use them to manage risk associated with price volatility in the underlying commodities. Additionally, they provide liquidity and price discovery for the commodities market.
What could one find on the website Futures and Commodities?
Futures and Commodities is a website dedicated to following the prices of commodities like natural gas, oil, and gold among others. The site also takes a look at the past and potential future of these commodities.
How Commodities Trading Works?
Commodities are physical goods such as food stuffs like corn and wheat, precious metals like gold and silver, and raw materials like steel and oil. Commodities are traded on exchanges, like stocks. The difference is that since commodities are physical items, it is difficult to literally trade barrels of oil, bars of gold or bushels of wheat within the actual building. So, commodities traders use futures contracts. A futures contract is an agreement between buyers and sellers of commodities. For example, say a copper mining company knows it will have mined a certain amount of copper at a future date. The company wants to sell that copper. Another company that creates products made from copper wants to buy a certain amount that it will need at a future date. If these two companies simply wait until that future date, the price of copper has a lot of time to rise or fall. To hedge against the risk of the price of copper rising or falling, the two companies create a futures contract stating that they will make the transaction at the agreed upon price. The contract prevents the price from moving for only the specified amount of copper. Producers and consumers of commodities use futures contracts to protect themselves from losses due to commodity price fluctuations. There are two types of participants in the commodities markets: commercials and speculators. Commercials are the actual companies or businessmen who mine, grow, harvest or extract commodities. Commercials use futures contracts to structure their businesses and grow their profits. Speculators are individuals who are not involved in the commodities business per se, but trade futures contracts in the hope of making money. Like stocks, the aim of commodity speculation is to buy futures contracts at low prices and sell them at high prices. Commodity speculators bet on whether or not the price of certain commodities like gold or oil will rise. Like stock speculation, commodity speculation involves considerable risks. Unlike stocks, futures contracts represent large amounts of individual commodities. This means that, depending on the price movement of the commodity, the speculator stands to lose a much larger amount of money.
What is the difference between commodities and stocks or the difference between commodities and futures?
Commodities are things - stores of value, like gold, wheat, soybeans, cocoa, cotton, oil, etc. Futures are contracts for the future delivery of something - could be a commodity, stock index, foreign currency, bond, etc.
Do futures contracts experience time decay?
Yes, futures contracts do not experience time decay like options contracts do. The value of a futures contract is based on the underlying asset's price and not affected by the passage of time.
What are the advantages of buying commodities?
Trading commodities is much like trading stock, in that you can sell the contract whenever you feel you will make a profit. Another advantage is the possibility to trade commodities without upfront capital.
What is the Commodities futures market?
The Commodities Futures Market is a Data Service Center. The data of Oil, Natural Gas, Gold, Copper, Coffee, Corn, Soybeans, Sugar, Wheat and Lumber products are all recorded and available to the public to see how well or bad the economy is doing with each category.
How is Jet Fuel hedged with futures?
Jet fuel can be hedged with over-the-counter instruments like options and swaps or with exchange-traded futures such as futures on crude or heating oil. These contracts are based an underlying commodity which is not jet fuel. Therefore, it is not a perfect hedge. In the U.S., there is no futures contract on kerosene, the primary component of jet fuel.
The History of Future Contracts and Future Prices?
The future prices represent the agreed upon monetary value for certain assets. The buyer and seller come to a compromise on when the asset will be sold; they also agree to a future date for this transaction. The futures contract is a written document between these two parties for the transaction. There is an exchange that exists solely for the trading of futures contracts. The futures contract is totally different from direct securities. For example, stocks, bonds, and warrants are all examples of direct securities. The purchaser of the futures contract is willing to take a long position for the future prices. The seller in the transaction takes a short position in this transaction. The main influence on future prices is supply and demand. This factor has the greatest influence on the entire process. In addition, the underlying asset does not have to be a commodity. Commodities are things like currencies, financial instruments, and securities. Another factor in the transaction is the delivery date of the contract. This date can also be referred to as the future date. This is the date that the contract must be delivered. The history of future prices can be traced all the way back to Japan in the 1730's. In 1864 the Chicago Board of Trade listed the first forward exchange contract. This contract was based on grain, and this contract also started a trend. A number of futures exchanges were set up around the world. By the year 1875, cotton was being traded in Mumbai. In the next few years the trade expanded to raw jute, jute goods, and edible oilseeds complex. The futures prices are stabilized by the futures contract being liquid. This is possible because the contract is highly standardized. The futures contract specifies the underlying asset or instrument. This can be a barrel of crude oil, or this can be a short term interest rate. The type of settlement is also specified. The settlement can be cash or physical. Another example is the contract in which the futures contract is quoted. Also, the quality and grade of the deliverable is factored into the equation. When it comes to bonds, the contract specifies which bonds can be delivered. Another factor affecting future prices is the credit risk. For instance, the trader must post a performance bond to reduce the risk. The amount of the performance bond is typically 5%-15% of the contract value.
What are the difference between spot and futures market?
The spot market sells things for immediate, or "on the spot," delivery. The futures market lets you arrange to set the price of something now that you'll pay for and get later. Commodities users like the futures market because it lets them predict costs. If you make twinkles it's easier to calculate the price of them a year out if you know what sugar will cost a year out. The risk is sugar will be cheaper a year from now than your futures contract has it priced at; that's mitigated by the risk sugar will be really high a year from now and a box of twinkles that sells for $2.99 will have $2.98 worth of sugar in it if you didn't have a futures contract outstanding.
What is a futures contract is?
It is an agreement to buy or sell a standard quantity of a commodity or a security - such as gold, $US or bank bills of exchange - on a specific future date at an agreed price determined at the time the contract is traded on the futures exchange. It is a binding contract, enforceable at law. Futures contracts are traded by open outcry on the floors of most futures exchanges, although the computer age has seen the spread of screen trading.
What type of products does MCX provide?
The India-based company MCX is a provider of commodities. Currently the sixth largest trading exchange in the world, MCX deals in trading of futures like bullion and ferrous (iron).
What is the stock market symbol for Silver futures?
There is none as Silver (a metal) is not a stock from a corporation.Wow. Like most things today that's technically correct, but useless.I believe that what you are after are the futures or options symbols.The symbols are different depending on which commodities exchange you look at. For the current contract, Dec 09, the COMEX ticker is SIZ09.CMX. Each contract has an expiration month, but not all months have a contract. Each month has a letter associated with it, not necessarily related to any of the letters in the name of the month. The letter for Dec is Z, for Jan it is F, Feb is G, May is K and so on. So the ticker for May 2010 silver is SIK10.CMXYou can find quotes here:http:/wwwzperiodzcmegroupzperiodzcom/trading/metals/precious/silverzperiodzhtmlSilver options (options on futures contracts) have similar ticker criteria.
