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Commodity trading example
Commodity trading for beginners pdf.
Commodities Trading
Written By
Christian Harris
Commodities hold immense significance within the financial market due to their fundamental role in production and manufacturing processes.
At their core, commodities represent essential raw materials used in the production of goods and services that permeate our daily lives, from oil and naturalgas to coffee and soybeans.
Trading commodities serves as a strategic means to enhance your portfolio diversification, particularly in periods of heightened market turbulence and uncertainty.
This guide for beginners will explain what commodity trading involves, alongside our tips for getting started and an example trading strategy.
Quick Introduction
- Tradable commodities are classified as energies, metals, livestock, and agriculture.
- The most traded commodity is oil, which is used in many products from petrochemicals to petroleum, to lubricants to diesel.
- Traders generally don’t buy and sell physical commodities – they trade in derivatives like futures and options.
- Supply and
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