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What is the difference between a securities broker and a commodities broker?
Securities and commodities brokers differ in the investments they buy and sell. Securities brokers typically buy and sell stocks, bonds, and mutual funds. Commodities brokers buy and sell futures contracts for metals, energy supplies such as oil, and
What are the laws surrounding commodity futures trading?
"In 2000, the Commodity Futures Modernization Act was signed into law by Bill Clinton. The purpose of this law was to settle a dispute between the SEC, which governs stocks, and the CFTC, which governs commodities."
What is the pay structure for many securities brokers and commodities dealers?
For many brokers and commodities dealers, income is based on a salary and on commissions from the sale or purchase of stocks, bonds, or futures contracts.
Futures and options?
Futures are contracts that allows you to buy certain commodities at a certain price by a certain date. Unless closed out, futures contracts are binding and the buyer of the contract must be able to buy the commodities binded by the contract.Options are contracts that gives you the RIGHTS but not the OBLIGATION to buy certain stocks or commodoties at a certain price by a certain date. The main difference is, you can choose to ultimately buy the underlying asset or not, its not binding on the buyer.
What type of stock is traded on the FTSE futures market?
The FTSE Futures Market trades a veritable cornucopia of stocks. The most popular items traded at FTSE include many different commodities and stock options.
What is the difference between penny stocks and cent stocks?
There is no difference between penny stocks and cent stocks.
Why commodity stock's earning is extremely price sensitive?
What do you mean by commodity stock? Do you mean a manufacturing company's stock or do you mean an ETF that invests in commodities? Commodities aren't stocks, they are bought and sold on commodity exchanges, usually in futures contracts.
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 a stock or commodity broker and a stock or commodity trader?
A Trader is someone who buys/sells stocks or commodities. A Broker is one who helps the trader in his buying/selling
What explains the difference between the stock market and the commodity market?
Stock market, as the name explains deals with the stocks/shares of a company floated at a stock exchange.Commodity markets, deals with commodities such as Oil, Gold, Silver, Grain, Coffee, Cotton and so on.In both the markets, the stocks or commodities are traded at their respective exchanges.
What has the author George Angell written?
George Angell has written: 'Winning in the futures market' -- subject(s): Futures market, Financial futures, Commodity exchanges 'Small stocks for big profits' -- subject(s): Stocks, Small capitalization stocks, Finance.,, Small business 'Winning in the futures market : a money-making guide to trading hedging and speculating' -- subject(s): Futures market, Financial futures, Speculation, Commodity exchanges 'Winning in the commodities market' -- subject(s): Commodity futures 'Real-time proven commodity spreads' -- subject(s): Commodity exchanges, Charts, diagrams 'Agricultural options' -- subject(s): Options (Finance), Cattle trade, Grain trade
Difference between futures market and forward market?
A Futures market is a forward market that trades through a centralised exchange, just like most stocks do. The classic forward market occurs as an Over-The-Counter (OTC) trade, rather than through an exchange.
