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Commodities
Details about the market.
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Explanation
The Commodity market consists of 22 active markets in which a trader can trade. Each market from Aluminium to Lean Hogs has trading hours and outside that even though orders will be placed they will not go through.
Fundamental to this market is the underlying movement of the dollar exchange rate as all commodities are valued in dollars.
On choosing a market to trade, a trader will be asked what volume they wish to buy, from which a dollar conversion is applied to calculate the bottom line size of the commodity contract.
Once a sum has been purchased the trader has to opt for storage facilities. These are graded by the daily storage costs and it is worth remembering that events can occur to stored commodities so perhaps paying for a higher quality storage facility may be worthwhile.
Once held the trader can see the current value of the holding and this reflects not only the shift in value of the product but also the impact of the dollar exchange rate.
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