Equity or commodity, where should I invest
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. Lower margin requirement (that is, a higher return on investment). This is a key factor that attracts many stock option traders to futures. Attractive premiums can be collected for deep out-of-the-money strikes. At such distant levels, short-term market moves typically will not have a big impact on your option’s value. Fundamental bias. When selling a stock option, the price of that stock is dependent on many facto...
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