Wednesday, September 21, 2011

The purchase and sale of commodity futures

Buying and selling shares because the company was born to find a way to raise capital. Assume joint responsibility and collected donations for the building expansion, etc. The stock market has developed what we see today. The purchase and sale of goods came about because the company wanted to manage and transfer risks. The commodities market is what we see today developed. There are great opportunities for profit, but the risk is even greater. What happens in the futures market isobserved throughout the world. The task determines the value of the goods.

Those who run the risk of investing in the futures market and commodity they want those who are willing to risk are called hedgers. Those who are willing to risk the futures market of raw materials, in the hope of accepting big profits are involved, are called speculators.

Commodity

Futures contracts are standardized so that they can meet the needs of both the buyer and seller to meet differentTypes of goods and financial instruments. In commodity futures will be given as follows:

* Quantity
* Delivery
* Quality
Price * (variable)

With standardized contracts, the contract may be exchanged for other contracts. This eliminates the need to actually deliver or accept delivery of a particular product. An equal and opposite position in the futures market was created. Sell ​​offset or close a long position or buy. The purchase of offset oris followed by a short position or sell.

To calculate a gain or loss of a future position, follow the following formula.

Sale price - purchase price x contract size x number of contracts = Profit or loss

Purchase and sale of goods is attractive because of the potential profit. Not for the faint of heart or those who do not have the money at risk. Getting Started in debt, is to reduce the savings or a pension fund is not advisable. When you invest in commodities, there are oftena minimum investment of $ 5000. This may be lost in a short time, but also win big in a short time will be realized.

If you are sure you are ready, commodity futures add to your investment portfolio and the minimum of $ 5,000 for an investor, contact the New Century International are experts. There are many advantages, a new customer Century International. The advantages include excellent customer service, call fast and live quotes.Contact to invest to get a new Century Financial Expert International started today.

The purchase and sale of commodity futures

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