A Primer on Commodity Trading

[Davy Dany]

Although most investors are solely familiar with equity trading, such as stocks or mutual funds, or investing in debt, such as bonds, commodity trading tends to be ignored despite the fact that it possesses many advantages over other types of investment instruments. Let's begin by defining what a 'commodity' is in the first place. Commodities can come in many forms. Most commonly traded commodities include lean hogs, live cattle, oats, wheat, metals, and even currencies.


One of the attractions of trading commodities is the potential for gaining large profits in a considerably short amount