![]() |
|
| *The Commerce Journal>>>Investing |
What are the differences between trading in commodities & trading in stocks? |
I've traded in stocks for a while, and people are recommending trading in commodities too. What are some of the more significant differences between the two? Is commodities more or less risky/profitable? Any important points to take note of? !!!> Thanks for your answer. How long is the expiration date for commodities? Very roughly speaking. Days, weeks, months? The main difference is that trading in commodity futures contracts gives you a huge amount of leverage -- that is, with a few hundred dollars of margin money, you may be able to control hundreds of thousands or even millions of dollars worth of futures. This means that you could make a great deal of money on a small investment, but it also cuts the other way -- if the market goes against you in commodities, you could lose much more than you invested. In stocks, you can only lose what you invested (unless you are using margin to purchase stocks). Also, commodities are a zero-sum gain. For every dollar you win, somebody else has to lose a dollar. This is not true of stocks, where if the company you invest in does well, everyone can make money. Commodities have an expiration date. A good website is Futuresource.com . You can find expirations, prices, charts and lots of free trader info. One difference is that commodities are far more risky. You can lose all your money very quickly, if you're not well informed, or a beginner. I assume you are talking about commodities futures. Futures markets are very different from the stock market, with different trading rules, margin, cost, leverage, etc. |
| Tags |
| Small Business Renting & Real Estate Personal Finance Investing Insurance Credit Corporations |
| Related information |
The question I would ask is what do I want from my money? Do you want a little income, Can you lose all of it in a speculation investment. Just think about what you want and once you know the ans... First, you need to understand that options are a "zero-sum" system. For each dollar one person makes on an option another person loses one dollar. This is true because for every long posi... 1. b 2.5=1/1-.6 2. C 3.b ...no idea dude(or should i say raju)(ok,that was lame my bad) ...take a look , Good luck Links Home Page: ... Finance.google.com is a great place to check stock charts. Stocks that have a clean 1 year trend of going up, probably aren't going to change from that. I like these kinds of stocks. MOS, u... Commodities are regulated by the Commodities Futures Trading Commission, as opposed to the SEC. Their site is linked below. ...You CAN learn all about trading stocks, options, commodities, currency, bonds, investments and investing, in general, and trading. Using a virtual trading platform, you should be able to try di... |
Commerce Categories--Copyright/IP Policy--Contact Webmaster |