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Investment basics: Commodity futures

Posted on 14 October 2013

Commodities are priced and traded among buyers and sellers in an equivalent manner regardless of where the commodity was produced or by whom. Examples of commodities would include corn, soybeans, oil and copper. The price of copper is virtually the same throughout the world, and fluctuates daily based on global supply and demand.
A commodity futures market (or exchange) is, in simple terms, nothing more or less than a public marketplace. The purchase and sale of a commodity, which must be made through a broker who is a member of an organized exchange, are made under the terms and conditions of a standardized futures contract………………………………………..Full Article: Source


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