You’d then buy it back (or cover it) at a lower price to earn a profit. A common question among those new to the concept of shorting is, ‘how can you sell something you do not own?’ When you are the seller of a futures contract, you agree to sell the underlying asset at a...
Analysts speculated that everything from investment in oil futures to increasing demand from countries like India and China contributed to the spike in price. Sometimes, gas prices go up even though there is plenty of crude oil on the market. It depends on what kind of oil it is. Oil ...
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Some of the most widely traded futures contracts are based on major commodities, such as crude oil, natural gas, corn, gold, and soybeans. Futures contracts can also be based on stock indexes, such as the S&P 500®index, Nasdaq-100®Index, and the Dow Jones Industrial Average®or on...
How do I trade commodities in the UK? As a UK trader, you may trade commodities through futures exchanges, like the London Metal Exchange (LME). The LME offers futures contracts on metals like copper, aluminum, precious metals, and other common metals. You may also speculate on commodity pr...
When you buy stock, you're speculating on a company's future [source: Murphy]. Also, government regulation comes into play, keeping the speculators from going completely out of control. In the U.S., the Commodity Futures Trading Commission (CFTC) was established during the 1970s oil crises...
Today, numerous online trading platforms offer commodity futures trading. So what do you look for when registering with an online commodity trading brokerage? First, ensure it is registered and regulated by the CFTC. You will also want to consider the brokers trading fees and commissions, the num...
Investors should do their research as they work through selecting a futurestrading platform. But what criteria should you be looking for as you decide on one? Here are a few things you should make sure your platform can do for you:
Like oil, natural gas trades in commodities markets and often in derivative products like futures and options. Ordinary investors can instead look to ETFs and ETNs that track natural gas (e.g.,UNG) or energy companies that specialize in natural gas production. Is Gasoline Produced From Crude O...
Natural gasproduction is described in terms of cubic feet. Similar to the convention for oil, the term Mmcf means 1 million cubic feet of gas. Bcf means 1 billion cubic feet, and Tcf represents 1 trillion cubic feet.2 Note that natural gas futures trade on theCME Groupfutures exchange but...