Commodity Trading Guide with Flannetlux

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Commodity Trading Guide with Flannetlux
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(No Transcript)
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• Commodity is an economic good or service that has
  full or substantial fungibility of goods with no
  regard to who produced them. Most commodities are
  raw materials, basic resources, agricultural, or
  mining products, such as iron ore, sugar or
  grains like rice wheat. Products are not made
  in the same place where they are required.
  Commodities can also be mass-produced
  unspecialized products such as chemicals and
  computer memory. Commoditization occurs as a
  goods or services market loses differentiation
  across its supply base, often by the diffusion of
  the intellectual capital necessary to acquire or
  produce it efficiently. As such, goods that
  formerly carried premium margins for market
  participants have become commodities, such as
  generic pharmaceuticals and DRAM chips.

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• Commodity market is the place where commodity
  products are bought and sold. We can
  distinguished the commodity product into two
  category such as- Soft commodity and Hard
  commodity.
• Soft commodity agriculture products such as
  wheat, sugar soyabean, and other seeds are
  includes.
• Hard commodity includes gold, silver, copper and
  other precious metals and natural gas and crude
  oil.

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• Commodity market provides two facilities to trade
  in market. The price of a commodity good is
  typically determined as a function of its market
  as a whole well-established physical commodities
  have actively traded spot and derivative markets.
• Spot Market In this market all the exchanging
  take place instantly. i,e at the negotiated
  price, they bought and sold the commodities
  product. There are so many mantis present to deal
  with this type of commodities. In spot market
  buying and selling of commodities in cash with
  instant delivery.

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• Derivative Market This market provides the
  facility to buyer or seller to buy or sell
  commodity product via Derivative contracts. A
  derivative contract is an agreement and a
  standard Performa to buy or sell commodity
  products for the particular price and for a fixed
  time period in the future. In future contracts
  buyer can take the physically delivery of
  commodity on specified cost.
• Starting trading in commodity is not a
  complicated task, its not a rocket science. But
  starting in a secure way is very important.
  Because many types of traders loss entire capital
  in the start of commodity trading days. So, it is
  important to talk about a healthy start up on the
  trading. Steps to start trading in the Commodity
  market

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Contact us

• Flannet Lux International
• Street Av. 27 De Febrero 674 Edif. El Salvador
  Suite 3
• Locations Santo Domingo, D.N. Dominican Republic
  10700
• Phone No 1 [phone]
• Website www.flannetlux.com
• Business Email info_at_flannetlux.com