Online Trading Guide

Canadian Online Trading Section


Canadian Online Trading Navigation


|

Main Trading Home Page
Partners
Tell A Friend about us
Online Trading Services |
Forex Online Option Trading |
Option Trading Online |
Magic Online Trading |
Discount Online Stock Trading |
Online Trading Companies |
Online+trading |
Online Card Trading |
Forex Online System Trading |
Online Stock Trading Companies |
Online Trading Company |
Forex Online System Trading |
Online Stock Trading Newsletter |
Discount Online Stock Trading |
Online Trading System |

List of Online-Trading Articles
List of Online-Trading Links


Canadian Online Trading Best seller

Buy it Now!



Best Canadian Online Trading products

FOREX KILLER
SOFTWARE
Read more...

 

 

$77 Million
in 2 Years?
Read more...

 

6 Figure Jobs - Executive Job Seeker

 

DAY TRADING
FREEDOM...Read More...Click Here

Stock & Commodity trading
Easily spot market turning points in Stocks and Commodities. Fibonacci and Gann price and time secrets and software. Free 7 day e-mail course.

Intelligent stock trading
A how to guide showing you step by step how to at the very least double your investment every twelve months in the stock Market.

Social bookmarking
You like it? Share it!
socialize it

Newsletter

Subscribe to our newsletter AND receive our exclusive Special Report on Online-Trading
Email:
First Name:



Main Canadian Online Trading sponsors

Canadian Online Trading

 

$77 Million
in 2 Years?
Read more...

 

 



 

Welcome to Online Trading Guide

 

Canadian Online Trading Article

Thumbnail example

This is a selection made from among articles on Canadian Online Trading. For a permanent link to this article, or to bookmark it for future reading, click here.

COMMODITY AND FUTURE ONLINE TRADING: APPLY AND SUCCEED

from: www.TradingExposed.com



Before online commodities and future trading became the high-rolling, high-stake investment ground that it is today, its early proprietors were farmers of the 1800ís.



These farmers would grow their crops and take these to the market come harvest time in the hope of selling them. But the main concern then was that without an indicator, they could not efficiently gauge how much of their goods are needed therefore resulting either to shortages or excesses, both causing losses for the farmer.



With shortages causing loss of the opportunity to earn more and excesses causing meats and crops to rot and dairy products to spoil. Also, when a certain produce is out of season any product made from them would be priced so high due to its scarcity.



A central marketplace was subsequently created for farmers to take their harvests and sell them either for immediate or forward delivery. Immediate delivery is what is known now as the spot or cash market and forward delivery is now called futures market.



This concept helped stabilize prices for commodities that were out of season as well as served as an effective indicator of supply and demand therefore saving farmers thousands of dollars that would otherwise go to spoilage.



From forward contracts evolved commodities and futures contracts. Forward contracts are effectively agreements to buy now for payment and delivery at a specified date in the future, which is usually three months from the date of the contract.



These were originally only for food and agricultural products but now they have expanded to include financial instruments. Forward contracts have evolved and have been standardized into what we know today as futures contracts.



Basically, when dealing in online commodities or futures trading, a contract must have a seller (the producer) and a buyer (the consumer). If you purchase a futures contract, you are agreeing to buy a commodity that is not there yet for a specific price.



Although most futures contracts are based on an actual commodity, some futures contracts also are sold based on its future value based on stock market indices.



Unless you are a businessman who is into the trade of the actual commodity you purchased, you won't actually use the goods (if youíre the buyer) or actually provide the commodity (if youíre the seller) for which you're trading a futures contract.



Remember, buyers and sellers in the futures market primarily enter into futures contracts to minimize risk or speculate rather than to exchange physical goods.



On the other hand, online commodities differ from futures trading in that commodities trading may involve the physical delivery of the goods. In which case a receipt is issued in the favor of the buyer. This receipt enables the buyer to take the commodity from the warehouse.



Traders in online commodities and futures market can use different strategies to take advantage of rising and declining prices. The most common are known as going long, going short and spreads.



When an investor enters a contract by agreeing to buy and receive delivery of the commodity at a set price - it means that he or she is trying to earn from an anticipated future price increase, he or she is going long.



When he or she is looking to make a profit from declining price levels, this is going short. The speculator sells high now so he or she can repurchase the contract in the future at a lower price.



When one makes a spread, however, he or she is trying to benefit from the price difference between two separate contracts of the same commodity.



As an online commodities or futures trader, therefore, you should be armed with a firm grasp of how the market and contracts function.


Christine P. Gray is a recognized authority on the subject of online trading. Her website Trading Exposed provides a wealth of informative articles and resources on everything you will need to know about Online Trading. All rights reserved. Articles may be reprinted as long as the content and links remains intact and unchanged.





Other Canadian Online Trading related Articles

Online Forex Trading
Online Commodities Trading
Online Trading Education
Commodity Future Online Trading
Trading Online

Do you want to contribute to our site : submit your articles HERE

This space can be enabled / disabled from your admin panel!

Canadian Online Trading Specific links

Canadian Online Trading News

No relevant info was found on this topic.