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What to Know about Online Brokers and Commodities?

What to Know about Online Brokers and Commodities?

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Page 1: What to Know about Online Brokers and Commodities?

What to Know about Online

Brokers and Commodities?

Page 2: What to Know about Online Brokers and Commodities?

Commodity BasisCommodity Basis

Commodity future trading and commodity physical trainingmay seem simple, but these are activities that should only bepursued after doing research. The same thing goes for peoplewho want to trade commodities online.

Page 3: What to Know about Online Brokers and Commodities?

Commodity Basis

Online Trading

It’s important to remember that almost all commodity brokersthese days offer online trading services. The majority of thesebrokers still engage in offline trading of commodities but there’s agrowing number of brokers who also offer their strategy analysis,charts, and other trading services online.

Page 4: What to Know about Online Brokers and Commodities?

The broker will let you know how much is needed depending onthe size of the account.

The important thing to remember is that two factors come intoplay when funding an account: risk tolerance and comfort level.

While high risk can equate to high gain, there are people whowant to play it safe and make sure that they’re not on the losingend.

Commodity Basis

Page 5: What to Know about Online Brokers and Commodities?

If the broker you chose offers simulations so you can practice,make the most out of it so you’re aware of the do’s and don’tsbefore spending your hard earned cash.

You should also check out the commodities listed at the UnitedStates Department of Agriculture (USDA) so you can avoid overtrading as much as possible.

USDA

Commodity Basis

Page 6: What to Know about Online Brokers and Commodities?

Commodity Basis

Learn the Tools of the Trade

Commodity future trading is derived from the actual market that’swhy you also need to know the what the supply and demand foreach item.Commodity Basis provide real-time information on the prices ofcommodities to help traders and brokers come up with wisebusiness decisions.

They offer intra-day cash market data to increase the accuracy oftrading decisions, historical data for analysis on regressions andseasonality, S & D and futures data for comparison of commoditiesin the global market, and a broker and trader network.

Page 8: What to Know about Online Brokers and Commodities?