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Old 02-27-2009, 12:26 PM   #1
topbonuscasino

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Default Financial Question: Commodities
Aren't stocks used for restraining people so fruit and other objects can be thrown at them?
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Old 02-27-2009, 01:15 PM   #2
Inenuedbabnor

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Watch Trading Places.
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Old 02-27-2009, 02:49 PM   #3
PemiaGefe

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Futures are time dependant. The buyer must be able to take possession of the commodity when the contract specifies. So if you are trading in grain you have to be able to store said grain when you agree to buy said grain. Just as an example.
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Old 02-27-2009, 03:20 PM   #4
CefGemYAffews

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In addition to futures contracts, there are Exchange Traded Funds (appear like stocks) that invest in commodities. You can choose your leverage ratio. Much simpler to work with, if you want to speculate every now and then.
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Old 02-27-2009, 03:48 PM   #5
WhileKelf

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Puddlewatch joined in '01? Long time lurker? I don't recall seeing you before.
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Old 02-27-2009, 08:41 PM   #6
Gvadelunar

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No one yet has mentioned what commodies are.
Stuff like corn, wheat, gold, silver, pork bellies -- stuff like that.
You buy contracts whereby theoretically you can take possession of a unit of them in the future. [It's almost unheard of for any trader to actually take possession of them. Towards the end of the contract period, the contract is sold--for a profit or a loss--to someone who actually uses the commodity.]
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