Saturday, December 21, 2013

How to trade commodity futures

How to trade commodity futures options trading course ETF, Exchange Traded Fund
Traders know that Commodity ETFs started trading around five years ago. Traders can trade these just like you would a equities. Today these funds are traded on security exchanges, New York Stock Exchange, American Stock Exchange. The majority of investors and traders already stock trading accounts with brokers. Your comfort level is increased since you are already familiar with your trading charts and platform.  Commodities are raw materials that will make their way into the economy and will react much sooner than the stock market. Look at building materials. Copper and Lumber markets will move up after February since home construction and wood manufacturing and products like electrical wire, copper pipes, building materials for new home construction. This
should create some great trading opportunities in the future. Traders that are looking for a pure commodity play, then you should consider an ETF that invests in just the Futures markets.
The energy markets consists of Crude Oil, Gasoline, Heating Oil and Natural Gas. These exchange traded funds  can become just like a news stock when the commodity is in the news. When oil was heading to the upper $140 range, the reporters could not stop talking about oil. Many traders got into this rise in Oil prices by participating in oil ETF's.  A trader needs to apply good risk management of their trading capitol to survival, even with ETFs.
 ETF Futures Trading

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