Commodities

Smart Solutions Ensuring Easy and Effective Trade

Commodities, whether they are related to food, energy or metals, are an important part of everyday life. Anyone who drives a car can become significantly impacted by high crude oil prices. Anyone who eats might feel the impact of a drought on the soybean supply. Similarly, commodities can be an important way to diversify a portfolio beyond traditional securities – either for the long term, or as a place to park cash during unusually volatile or bearish stock markets. (Commodities traditionally move in opposition to stocks.)

A smart investor should not put all his eggs in one basket. He should look for a balanced portfolio with the right mix of investments spread across various categories.

Gone are the days when investors were confined to assets such as stock indexes and currencies, as commodity trading offers a wide variety of investment options such as metals, energy, bonds, currencies, and an ever growing list of other underlying assets. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures.