Commodity index funds are playing a growing role in retail investor portfolios. In many ways, investors have viewed commodity trading as the purview of large investors, the very wealthy and the highly leveraged. These spot trades bring to mind rough men on a trading floor shouting the prices of pork-belly futures. Some direct commodity markets are virtual, in that commodities such as energy are traded and the trades executed real time.
Instead of the real-time trades required of the direct c...
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commodity futures
The Commodity Futures Market
As you learn the basics of investing, you'll find some segments of the market harder than others. Those of you that have looked into Commodity Futures & Options know what I'm talking about. This is arguably one of the most complex and risky parts of the investment world. Still, more than 1 billion futures and options contracts are traded on the U.S. Futures Exchange.
Commodity Futures and Options are not the same as stocks, meaning they are not equity. They are basically contracts for fut...
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