Commodity trading involves the exchange of raw or primary products. It can be the buying and selling of future contracts in Gold, Silver, Oil, Gas, Platinum, Copper, Zinc, Cotton, Wheat, Corn and many more physical products. These row commodities are bought and sold in standardized contracts. The most extensively traded and most liquid commodities are Oil and Gold.
The buyers and sellers have some obligations. The buyer is responsible for taking delivery and paying for the cash commodity during a fixed time period. The seller is responsible for delivering the commodity, for which he/she will be paid the price that was decided in the exchange pit by the dealers. The price value here depends upon the grade of the specific material. The buyer and seller are qualified to eliminate their obligation by offsetting their trade at the exchange prior to the contract comes due.
This information provided by Orient Financial Brokers (OFB), licensed and regulated by Central Bank of the UAE , to conduct brokerage in Foreign Exchange, Commodities and Money Markets. OFB offers a number of commodity futures contracts including all main oil, grain and metal contracts. (Click here to see the lists)
Labels: Commodity Futures Trading