Commodities

Actuals: Commodities and Financial Realities
An in-depth examination of 'Actuals' in commodities trading and financial reporting, including definitions, historical context, types, key events, formulas, charts, examples, and more.
Backwardation: A Comprehensive Guide
Backwardation is a market condition where the futures price of a commodity is lower than the spot price. Learn about its historical context, types, key events, and more.
Basic Commodities: Unprocessed Goods Traded Globally
Basic commodities are raw materials or primary agricultural products that can be bought and sold, such as gold, coffee, copper, and oil. These unprocessed goods are traded on global markets and form the backbone of the global economy.
Brent Crude: A Major Trading Classification of Sweet Light Crude Oil
Brent Crude is one of the most significant trading classifications of crude oil, originating from the North Sea and known for its importance in oil pricing globally.
Broker: Facilitator in Various Markets
An in-depth analysis of the role of brokers in different markets, including stock, commodities, insurance, and shipping, along with their importance, methods, and historical context.
Chicago Board of Trade: History and Role in Financial Markets
A detailed overview of the Chicago Board of Trade (CBOT), its historical context, types of traded commodities, key events, and its evolution as a major futures and options exchange.
Chicago Mercantile Exchange: Gateway to Futures Trading
The Chicago Mercantile Exchange (CME) is a global derivatives marketplace that was originally founded in 1898 for trading agricultural commodities futures and has since expanded to include financial futures contracts.
Commodities: Basic Goods Used in Commerce
Commodities are basic goods used in commerce that are interchangeable with other goods of the same type, including metals, energy products, and agricultural items.
Commodities Exchange: Marketplaces for Trading Commodities
A comprehensive look into Commodities Exchanges, their historical context, types, key events, mathematical models, importance, applicability, examples, and related terms.
Commodities Market: A Marketplace for Raw Materials
Explore the world of commodities markets, where raw materials like metals, energy, and agricultural products are traded. Learn about its history, types, key events, formulas, importance, and more.
Commodity ETF: A Type of Exchange-Traded Fund Focused on Commodities
Commodity ETFs are exchange-traded funds that invest in commodities like metals, oil, agriculture, and natural gas. They offer investors exposure to commodity markets without the need to directly purchase physical commodities.
Commodity Exchange: A Marketplace for Trading Commodities
A comprehensive overview of Commodity Exchanges, including historical context, types, key events, detailed explanations, mathematical models, and more.
Commodity Fetishism: The Illusion of Economic Relationships
Commodity fetishism describes the perception of social relationships involved in production not as relationships among people, but as economic relationships among money and commodities.
Contango: Understanding Futures Pricing
A comprehensive look at Contango, a market condition where the futures price of a commodity is higher than the spot price, including its historical context, types, key events, and its importance in finance and trading.
Contango and Backwardation: Market Conditions in Futures Trading
Contango and Backwardation refer to market conditions where futures prices are higher or lower than spot prices, respectively. These terms describe the shape of the futures curve and are crucial concepts in understanding commodity markets.
Corner: A Manipulative Tactic in Markets
In markets, a corner is a tactic where a party buys and hoards a large quantity of a commodity or security to manipulate its price and profit from contracts where others cannot deliver the required good or security.
Covering: Risk Management in Financial Markets
An action taken to reduce or eliminate the risk involved in having an open position in a financial, commodity, or currency market.
Delivery Month: Understanding Financial Contract Terms
The specifics of the delivery month, the time frame in which the financial instrument or commodity must be delivered according to the contract.
Forward Contract: An Agreement for Future Delivery
A detailed exploration of Forward Contracts, their types, historical context, key events, importance, applicability, examples, and much more.
Future Contract: A Standardized Agreement to Trade Commodity at Predetermined Price
A comprehensive definition and explanation of Future Contracts, covering types, examples, and historical context. Learn how future contracts are used in various markets.
Futures Chain: Comprehensive Overview
A detailed examination of Futures Chain, listing all available futures contracts for a commodity or financial instrument, analogous to an options chain but for futures.
Futures Contracts: Standardized Legal Agreements for Future Transactions
Futures contracts are standardized legal agreements to buy or sell a particular commodity at a predetermined price at a specified time in the future. This article covers the definition, types, considerations, examples, historical context, applicability, comparisons, related terms, FAQs, and references.
Futures Market: An Overview of Trading Contracts
A comprehensive guide to the futures market, its historical context, types of contracts, key events, importance, applicability, examples, and more.
Hard Commodities: Metals and Energy Resources
An in-depth exploration of metals and energy resources like gold, oil, and natural gas, covering historical context, types, key events, and their importance in global markets.
Hard Commodity: Essential and Durable Resources
A comprehensive exploration of hard commodities, including their historical context, types, key events, detailed explanations, economic models, importance, examples, and related terms.
Intercontinental Exchange: A Comprehensive Overview
Detailed examination of the Intercontinental Exchange (ICE), its historical context, expansions, types of contracts, key events, and significance in global financial markets.
LME: London Metal Exchange
A comprehensive overview of the London Metal Exchange, including its history, key events, structure, types of contracts, and its importance in the global commodities market.
London Metal Exchange: Global Hub for Metal Trading
The London Metal Exchange (LME) is the world's central trading hub for non-ferrous metals, including aluminum, zinc, and copper.
London Metal Exchange: The Global Hub for Non-Ferrous Metals Trading
A comprehensive overview of the London Metal Exchange (LME), its historical context, key events, types of metals traded, mathematical models, and its importance in the global market.
Market Limit: The Highest or Lowest Price a Commodity Can Reach in Trading Within a Single Day
A comprehensive explanation of the Market Limit, detailing its definition, types, special considerations, examples, historical context, applicability, related terms, FAQs, and references.
Market Price: Definition and Comprehensive Overview
An in-depth exploration of the concept of Market Price, including its types, historical context, importance, and real-world applicability.
Open Outcry: Traditional Trading Method
An in-depth look at Open Outcry, a traditional system of trading in commodities, securities, or currencies where traders call out their trades.
Spot Market: Immediate Delivery in Commodities and Foreign Exchange
The Spot Market deals in commodities or foreign exchange for immediate delivery, typically within two business days for currencies and within seven days for commodities. Compare with forward dealing futures contracts.
Stockpile: Large Reserve of Commodities
A comprehensive exploration of stockpiles, their historical context, types, key events, explanations, and importance in modern economies.
Stocks vs. Commodities: Understanding Different Investment Vehicles
This entry delves into the distinction between stocks and commodities, exploring their characteristics, historical context, types, key events, and relevance in the financial markets.
Clearinghouse: Financial Settlement and Exchange
A clearinghouse is an association or organization that facilitates the exchange of checks, drafts, or other forms of indebtedness among its members, aiming to settle balances with minimal inconvenience and labor.
Commodities Futures: Contracts and Trading
Commodities Futures are contracts in which sellers promise to deliver a given commodity by a certain date at a predetermined price. The contract specifies the item, price, expiration date, and standardized unit to be traded.
Cornering the Market: Illegal Practice in Trading
Cornering the Market is the practice of purchasing a security or commodity in large volumes to control its price, which is considered illegal due to its artificial price manipulation effects.
Daily Trading Limit: Market Fluctuation Control Mechanism
The daily trading limit is the maximum allowed price fluctuation for commodities and options within a single trading day, with restrictions to curb extreme volatility in the market.
Economic Goods: Definition and Market Value
Economic goods are commodities and products requiring effort and resources, resulting in market value. Examples and special considerations differentiate them from non-economic goods.
Farm Surplus: Unsold Agricultural Goods
Understanding farm surplus, its implications, and political considerations surrounding government intervention to maintain profitable price levels for farmers.
Fluctuation: Variations in Prices and Rates
Fluctuation refers to the change in prices or interest rates, either upward or downward, that can apply to the prices of stocks, bonds, commodities, or economic conditions.
Futures Contract: Agreement to Buy or Sell Specified Assets at a Future Date
A futures contract is an agreement to buy or sell a specific amount of a commodity or financial instrument at a predetermined price on a specific future date, obligating both parties to transact unless the contract is sold to another party before the settlement date.
Futures Market: A Commodity Exchange for Futures Contracts
The Futures Market is an organized marketplace where Futures Contracts, agreements to buy or sell a commodity at a future date at a predetermined price, are traded. This article explores types, functions, historical context, and modern applications of Futures Markets.
Hoarding: Excess Accumulation of Commodities or Currency
Hoarding refers to the excess accumulation of commodities or currency in anticipation of scarcity and/or higher prices. This entry delves into its various aspects, types, historical context, and implications.
Investment Strategy: Asset Allocation and Decision-Making
A comprehensive overview of investment strategy, detailing the process and considerations for allocating assets among various investment choices to achieve financial objectives based on individual investor profiles.
Medium of Exchange: Definition and Importance
A comprehensive overview of the concept of Medium of Exchange, its types, examples, historical context, and its role in economics.
Overhang: Sizable Block of Assets Affecting Market Prices
An in-depth analysis of Overhang in real estate, securities, and commodities. Explore how substantial holdings impact market dynamics and their implications.
Partial Delivery: An Overview
Partial delivery occurs when a broker does not transfer the full amount of a security or commodity as specified in a contract. This article explores the concept, implications, and related terms.
Profit Taking: Financial Strategy
An in-depth exploration of profit taking as a strategy employed by traders to secure gains by selling assets following a short-term price increase, and its impact on market movements.
Regulated Commodities: Comprehensive Overview and Regulations
Insight into commodities under the jurisdiction of the Commodity Futures Trading Commission (CFTC), including regulations, market dynamics, and key considerations.
SEAT: Membership on a Securities or Commodities Exchange
A detailed exploration of the term 'SEAT,' referring to membership on a securities or commodities exchange, typically bought and sold at market-driven prices.
Securities and Commodities Exchanges: National Trading Platforms for Financial Instruments
An in-depth look into organized, national exchanges where securities, options, and commodities futures contracts are traded by members for their own accounts and the accounts of customers.
Short Position: Definition and Explanation
A comprehensive understanding of Short Position in commodities and securities, its implications, historical context, and practical applications.
Spot Price: Current Delivery Price in the Spot Market
A detailed overview of the spot price, its significance in finance and trading, the factors influencing it, and its comparison to futures prices.
Technical Analysis: Research into the Demand and Supply for Securities and Commodities
Technical Analysis involves the examination of trading volume and price studies to predict price movements. By utilizing charts or computer programs, technical analysts aim to identify market trends.
Trade Date: Definition and Key Considerations
Insight into the concept of Trade Date, its importance in financial transactions, comparison with Settlement Date, and related terms in finance.
Trading Range: An In-Depth Guide
A comprehensive guide to understanding Trading Range in commodities and securities, including definitions, examples, and related terms.
Trend Line: A Tool for Predicting Future Price Movements
An in-depth exploration of trend lines, used by technical analysts to chart past direction and predict future movements of securities or commodities.
Unit of Trading: Minimum Trading Units
Detailed exploration of the Unit of Trading, which constitutes the minimum number of shares, bonds, or commodities traded on an exchange.
Warehouse Receipt: Document of Safekeeping and Transfer
A comprehensive definition of Warehouse Receipt, its types, historical context, legal framework, and applications in finance and trade.
Worth: Understanding Inherent Value
In-depth exploration of Worth, covering its definition, measurement, relevant programs such as Comparable Worth, and its economic implications.
Crude Oil: Definition, Importance, and Investment Implications
Explore the definition, significance, and investment implications of crude oil - a naturally occurring petroleum product essential in the global energy landscape.
Understanding CWT (Hundredweight) and How to Calculate It
Detailed explanation of what CWT (Hundredweight) is, its historical context, calculation methods, and its use in trading commodities contracts and the shipping industry.
Exchanges: Comprehensive Explanation, Types, and Examples
A detailed guide on exchanges, covering their definition, types, functioning, examples, and the role they play in finance.
Globex Trading Platform: Functionality, History, and Impact
A comprehensive overview of the Globex trading platform, including its functionality, origins, and influence on the derivatives, futures, and commodities markets since its introduction in 1992.
Gold Option: Definition, Functionality, and Types
A comprehensive guide to understanding gold options, including their definition, how they work, and the different types available.
Hardening: Definition, Mechanisms, and Speculator Impact
A Comprehensive Guide to Understanding Hardening in Commodity and Futures Markets: Stabilization, Gradual Advances, and the Role of Speculators
Intercontinental Exchange (ICE): Understanding Its Role and Functions
Comprehensive overview of the Intercontinental Exchange (ICE), a market based in Atlanta, Georgia that facilitates the electronic exchange of energy commodities, among other financial instruments.
Investor: Roles, Types, and Investment Vehicles
A comprehensive look at what investors do, the different types of investors, and common investment vehicles such as stocks, bonds, commodities, and mutual funds.
Understanding the Oil Price to Natural Gas Ratio: Definition and Significance
An in-depth exploration of the Oil Price to Natural Gas Ratio, including its calculation, significance, historical context, and implications for the energy markets.
Petroleum: What It Is, Why It's Important, and How To Invest in It
A comprehensive guide to understanding petroleum, its significance in global energy, and the various methods of investing in this essential commodity.
S&P GSCI: Definition, Commodity Types, and Potential Drawbacks
Explore the S&P GSCI, an index of 24 exchange-traded futures contracts representing a significant portion of the global commodities market. Learn about its definition, the types of commodities listed, and potential drawbacks.
Spot Rate: Definition, Explanation, and Examples
A detailed guide on spot rates, including their definition, how they work, and practical examples. Understand the immediate settlement price for commodities, securities, and currencies.
Spot Trading: What It Is, How It Works, and How to Profit
Discover the essentials of spot trading, including its definition, mechanics, strategies for profit, and real-world applications in finance and commodities.
Store of Value: Definition, Mechanisms, and Examples
A comprehensive guide to understanding the concept of store of value, how various assets function as stores of value, and practical examples.

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