Commodity Trading in Jordan

Commodity Trading in Jordan

Commodity Trading Tips from Jordan Based Company
To familiarize yourself with some investing basics, consider checking out An Introduction to Stocks, Futures, Forex & Options Markets before diving into commodities.

What is a Commodity ?
Commodities are the raw materials required to keep economies around the world in motion. There are four primary categories of commodities currently traded on the Market Including :

Energy:
This includes Gasoline, Heating Oil, Natural Gas and Crude Oil.

Livestock and Meat :
Lean Hogs, Pork Bellies, Live Cattle and Feeder cattle are all included in this Category.

Metals :
Gold, Silver, Platinum and Copper are all traded daily in the Commodities Exchange.

Agricultural :
This category includes raw materials such as Corn, Soybeans, Cocoa, Coffee, Cotton and Sugar.

There are two types of investors involved in Commodity Trading. The first group is known as hedgers, these are typically large corporations that depend on a consistent and reliable price for basic materials.The other group of investors is known as speculators. As a commodity trader, this is the type of investor you will be. As a speculator, you are not actually purchasing these items. Rather, you are purchasing contracts for these items which you later sell when you feel that the price of a particular commodity is on its way down.

Learning to Trade :
A 'commodity market' is a market that trades in primary rather than manufactured products. Soft commodities are agricultural products such as wheat, coffee, cocoa and sugar. Hard commodities are mined, such as gold and oil. Investors access about 50 major commodity markets worldwide with purely financial transactions increasingly outnumbering physical trades in which goods are delivered. Futures contracts are the oldest way of investing in commodities. Futures are secured by physical assets.

Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.

A financial derivative is a financial instrument whose value is derived from a commodity termed an underlier. Derivatives are either exchange-traded or over-the-counter (OTC). An increasing number of derivatives are traded via clearing houses some with Central Counterparty Clearing, which provide clearing and settlement services on a futures exchange, as well as off-exchange in the OTC market.

Derivatives such as futures contracts, Swaps (1970s-), Exchange-traded Commodities (ETC) (2003-), forward contracts have become the primary trading instruments in commodity markets. Futures are traded on regulated commodities exchanges. Over-the-counter (OTC) contracts are "privately negotiated bilateral contracts entered into between the contracting parties directly".

Exchange - traded funds (ETFs) began to feature commodities in 2003. Gold ETFs are based on "electronic gold" that does not entail the ownership of physical bullion, with its added costs of insurance and storage in repositories such as the London bullion market. According to the World Gold Council, ETFs allow investors to be exposed to the gold market without the risk of price volatility associated with gold as a physical commodity.

Commodity - based money and commodity markets in a crude early form are believed to have originated in Sumer between 4500 BC and 4000 BC. Sumerians first used clay tokens sealed in a clay vessel, then clay writing tablets to represent the amount - for example, the number of goats, to be delivered. These promises of time and date of delivery resemble futures contract.

Early civilizations variously used pigs, rare seashells, or other items as commodity money. Since that time traders have sought ways to simplify and standardize trade contracts.

Gold and silver markets evolved in classical civilizations. At first the precious metals were valued for their beauty and intrinsic worth and were associated with royalty. In time, they were used for trading and were exchanged for other goods and commodities, or for payments of labor. Gold, measured out, then became money.

Gold's scarcity, unique density and the way it could be easily melted, shaped, and measured made it a natural trading asset.

Beginning in the late 10th century, commodity markets grew as a mechanism for allocating goods, labor, land and capital across Europe. Between the late 11th and the late 13th century, English urbanization, regional specialization, expanded and improved infrastructure, the increased use of coinage and the proliferation of markets and fairs were evidence of commercialization. The spread of markets is illustrated by the 1466 installation of reliable scales in the villages of Sloten and Osdorp so villagers no longer had to travel to Haarlem or Amsterdam to weigh their locally produced cheese and butter.

Indeed, the Amsterdam Stock Exchange, often cited as the first stock exchange, originated as a market for the exchange of commodities. Early trading on the Amsterdam Stock Exchange often involved the use of very sophisticated contracts, including short sales, forward contracts, and options. "Trading took place at the Amsterdam Bourse, an open aired venue, which was created as a commodity exchange in 1530 and rebuilt in 1608. Commodity exchanges themselves were a relatively recent invention, existing in only a handful of cities."

In 1864, in the United States, wheat, corn, cattle, and pigs were widely traded using standard instruments on the Chicago Board of Trade (CBOT), the world's oldest futures and options exchange. Other food commodities were added to the Commodity Exchange Act and traded through CBOT in the 1930s and 1940s, expanding the list from grains to include rice, mill feeds, butter, eggs, Irish potatoes and soybeans. Successful commodity markets require broad consensus on product variations to make each commodity acceptable for trading, such as the purity of gold in bullion.[citation needed] Classical civilizations built complex global markets trading gold or silver for spices, cloth, wood and weapons, most of which had standards of quality and timeliness.

Through the 19th century "the exchanges became effective spokesmen for, and innovators of, improvements in transportation, warehousing, and financing, which paved the way to expanded interstate and international trade."

Reputation and clearing became central concerns, and states that could handle them most effectively developed powerful financial centers.

Commodity Trading Company in Afghanistan Commodity Trading Company in Albania Commodity Trading Company in Algeria Commodity Trading Company in Andorra Commodity Trading Company in Angola Commodity Trading Company in Antigua and Barbuda Commodity Trading Company in Argentina Commodity Trading Company in Armenia Commodity Trading Company in Australia Converted Commodity Trading Company in Austria Commodity Trading Company in Azerbaijan Commodity Trading Company in Bahamas Commodity Trading Company in Bahrain Commodity Trading Company in Bangladesh Commodity Trading Company in Barbados Commodity Trading Company in Belarus Commodity Trading Company in Belgium Commodity Trading Company in Benin Commodity Trading Company in Bhutan Commodity Trading Company in Bolivia State Commodity Trading Company in Bosnia and Herzegovina Commodity Trading Company in Botswana Commodity Trading Company in Brazil Commodity Trading Company in Brunei Commodity Trading Company in Bulgaria Commodity Trading Company in Burkina Faso Commodity Trading Company in Burundi Commodity Trading Company in Cambodia Commodity Trading Company in Cameroon Commodity Trading Company in Canada Commodity Trading Company in Cape Verde Commodity Trading Company in Central African Republic Commodity Trading Company in Chad Commodity Trading Company in Chile Commodity Trading Company in China Commodity Trading Company in Colombia Commodity Trading Company in Comoros Commodity Trading Company in Costa Rica State Commodity Trading Company in Croatia Commodity Trading Company in Cuba Commodity Trading Company in Cyprus Commodity Trading Company in Czech Republic Commodity Trading Company in Democratic Republic of the Congo Commodity Trading Company in Denmark Commodity Trading Company in Djibouti Commodity Trading Company in Dominica Commodity Trading Company in Dominican Republic Commodity Trading Company in Ecuador Commodity Trading Company in Egypt Commodity Trading Company in El Salvador Commodity Trading Company in Equatorial Guinea Commodity Trading Company in Eritrea Commodity Trading Company in Estonia Commodity Trading Company in Ethiopia Commodity Trading Company in Federated States of Micronesia Commodity Trading Company in Fiji Commodity Trading Company in Finland Commodity Trading Company in France Commodity Trading Company in Gabon Commodity Trading Company in Gambia Commodity Trading Company in Georgia Commodity Trading Company in Germany Commodity Trading Company in Ghana Commodity Trading Company in Greece Commodity Trading Company in Grenada Commodity Trading Company in Guatemala Commodity Trading Company in Guinea Commodity Trading Company in Grenada Bissau Commodity Trading Company in Guyana Commodity Trading Company in Haiti Commodity Trading Company in Honduras Commodity Trading Company in Hungary Commodity Trading Company in Iceland Commodity Trading Company in India Commodity Trading Company in Indonesia Commodity Trading Company in Iran Commodity Trading Company in Iraq Commodity Trading Company in Ireland Commodity Trading Company in Israel Commodity Trading Company in Italy Commodity Trading Company in Jamaica Commodity Trading Company in Japan Commodity Trading Company in Jordan Commodity Trading Company in Kazakhstan Commodity Trading Company in Kenya Commodity Trading Company in Kiribati Commodity Trading Company in Kosovo Commodity Trading Company in Kuwait Commodity Trading Company in Kyrgyzstan Commodity Trading Company in Laos Commodity Trading Company in Latvia Commodity Trading Company in Lebanon Commodity Trading Company in Lesotho Commodity Trading Company in Liberia Commodity Trading Company in Libya Commodity Trading Company in Liechtenstein Commodity Trading Company in Lithuania Commodity Trading Company in Luxembourg Commodity Trading Company in Macedonia Commodity Trading Company in Madagascar Commodity Trading Company in Malawi Commodity Trading Company in Malaysia Commodity Trading Company in Maldives Commodity Trading Company in Mali Commodity Trading Company in Malta Commodity Trading Company in Marshall Islands Commodity Trading Company in Mauritania Commodity Trading Company in Mauritius Commodity Trading Company in Mexico Commodity Trading Company in Moldova Commodity Trading Company in Monaco Commodity Trading Company in Mongolia Commodity Trading Company in Montenegro Commodity Trading Company in Morocco Commodity Trading Company in Mozambique Commodity Trading Company in Myanmar Burma Commodity Trading Company in Namibia Commodity Trading Company in Nauru Commodity Trading Company in Nepal Commodity Trading Company in Netherlands Commodity Trading Company in New Zealand Commodity Trading Company in Nicaragua Commodity Trading Company in Niger Commodity Trading Company in Nigeria Commodity Trading Company in North Korea Commodity Trading Company in Norway Commodity Trading Company in Oman Commodity Trading Company in Pakistan Commodity Trading Company in Palau Commodity Trading Company in Panama Commodity Trading Company in Papua New Guinea Commodity Trading Company in Paraguay Commodity Trading Company in Peru Commodity Trading Company in Philippines Commodity Trading Company in Poland Commodity Trading Company in Portugal Commodity Trading Company in Qatar Commodity Trading Company in Romania Commodity Trading Company in Russia Commodity Trading Company in Rwanda Commodity Trading Company in Saint Kitts and Nevis Commodity Trading Company in Saint Lucia Commodity Trading Company in Saint Vincent and The Grenadines Commodity Trading Company in Samoa Commodity Trading Company in Marino Commodity Trading Company in Sao Tome and Principe Commodity Trading Company in Saudi Arabia Commodity Trading Company in Senegal Commodity Trading Company in Serbia Commodity Trading Company in Seychelles Commodity Trading Company in Sierra Leone Commodity Trading Company in Singapore Commodity Trading Company in Slovakia Commodity Trading Company in Slovenia Commodity Trading Company in Solomon Islands Commodity Trading Company in Somalia Commodity Trading Company in South Africa Commodity Trading Company in South Korea Commodity Trading Company in South Sudan Commodity Trading Company in Spain Commodity Trading Company in Sri Lanka Commodity Trading Company in Sudan Commodity Trading Company in Suriname Commodity Trading Company in Swaziland Commodity Trading Company in Sweden Commodity Trading Company in Switzerland Pantone Commodity Trading Company in Syria Commodity Trading Company in Taiwan Commodity Trading Company in Tajikistan Commodity Trading Company in Tanzania Commodity Trading Company in Thailand Commodity Trading Company in Timor Commodity Trading Company in Togo Commodity Trading Company in Tonga Commodity Trading Company in Trinidad and Tobago Commodity Trading Company in Tunisia Commodity Trading Company in Turkey Commodity Trading Company in Turkmenistan Commodity Trading Company in Tuvalu Commodity Trading Company in Uganda Commodity Trading Company in Ukraine Commodity Trading Company in United Arab Emirates Commodity Trading Company in United Kingdom Commodity Trading Company in United States Commodity Trading Company in Uruguay Commodity Trading Company in Uzbekistan Commodity Trading Company in Vanuatu Commodity Trading Company in Vatican City Commodity Trading Company in Venezuela Commodity Trading Company in Vietnam Commodity Trading Company in Yemen Commodity Trading Company in Zambia Commodity Trading Company in Zimbabwe

Home : About Us : Services : Payments : Enquiry : Order : Contact Us

© 2015 Commodity Trading Company. Website Design by Global Adverting Media Private Limited