So, you’re a n aspirant investor looking for a platform or an asset and invest your money hoping to double its figure. If you observe and have a closer look about commodity physical trading, it simply means that the trade involves primary products related on selling products like agricultural like rice, coffee and beans, or other goods like gold, oil, copper, silver and zinc. These commodities are brought and sold in standardize contracts. They are uniform as one of the fraction of serves to the same purpose of the other.
The Trade
So a barrel of oil for example, an ounce of gold or maybe a bushel of wheat or corn is common goods that are tangible on the market. These goods are pretty much like one another but, most extensive traded are the gold, oil and coffee. These are form in currency trading where the concept includes the shipping cost along with many kinds of miscellaneous. The shipping rate will vary depending on the price of the oil. Most of these trading are on the spot markets where the currency trading is exchanged immediately for cash or in some cases traded with other goods.
Commodity Trading
The Commodity trading is also known by many as the commodity option that creates a contract for anyone to sell or buy a certain commodity for a fixed amount of price. The huge potential profit on the other hand depends on the contract period. Depending on the demand your goods can double your money or it can be vanished in just a fracture of a second. It involves opportunity and risk that simply involves prediction.
Buyers and Sellers
You commodity trading will involves both the buyers and the sellers. The trading market information got the numbers of factors that can affect the price. It could rise up or fall and it involves analyzation about this matter. The buyer is the person who is going to take the commodity and pay cash to the seller. On the other hand, the seller is the one who is responsible delivering the goods to the buyer which will always be paid for the traded goods.
Other factors
There are other factors that needed to be considered about the price movement of a certain goods whether it is traded from agricultural commodities in London, common goods or USDA or Oils in the Middle East. These factors are the taxes, inflation rate of the country, politics, technology even weather and transportation. You can maximize the profits your profits because of the fact that the stock market is skyrocketing back.
The Market
The market orders may come in many kinds of different flavors which you can simply open or close the trade in a matter of time. These market orders will simply triggers by the price usually with the help of the brokers they have the eyes on the market prices. These brokers can also benefit from these market trading times. The only difference is that it is them that uses your cash and they are the one that makes sure that the money will be doubled.
Commodity Basis 