What are the trading instruments in commodity markets




A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type.

In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.

A commodity market is a market that trades in the primary economic sector rather than manufactured products. Soft commodities are agricultural products like wheat, coffee, cocoa, fruit and sugar. Hard commodities are mined, like gold and oil.

Much has been written about the ways in which proprietary quantitative and algorithmic trading strategies have the potential to increase trading performance across commodity, currency, debt and equity markets.

The demand from merchants and funds for automated trading continues to grow, as the velocity of trading in commodity markets accelerates.

There is no doubt that quantitative and algorithmic trading is here to stay, and has the potential to transform commodity trading

Get the best technical and fundamental analysis in stock trading and commodity from experts like Bazaar Trading, 100MCX.

(Source : https://www.quora.com/What-are-the-trading-instruments-in-commodity-markets)














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