Commodity Trading Accounts- What You Need to Know

By | 26/09/2018

Investing in the stock market isn’t a joke. You have to know several things about market trends, funds, stocks and bonds, market conditions, fluctuations, etc. First Free Online Financial Advisory Moneymindz says that you must know multiple basic facts about investing, For instance, commodity trading accounts.

Stocks and bonds are getting riskier as always. Investors look for returns at alternative investments too. Commodity markets are very risky and there are chances of losing money in it.

What are Commodity Trading Accounts?

Commodity trading focuses on purchasing and trading commodities like gold rather than company shares as in stock trading.

In a commodity trading account, a commodity broker (either a firm or a person) executes orders to trade commodity contacts on behalf of clients while charging them a commission. India’s First Free On call Financial Advisory Moneymindz says that an individual who trades for his own account is called a trader. In a commodity contract, one can find financial derivatives and options.

Once upon a time, commodity brokers traded grain and livestock futures contracts. Times have changed and today, commodity brokers trade a far reaching assortment of financial derivatives based on not just grain and livestock but also foods, metals, equities, bonds etc.

Types of commodity brokers

Commodity brokers include firms and individuals.

  1. Floor Broker

This is an individual or organization that trades commodity contracts on the floor of a commodities exchange.

  1. Futures Commission Merchant

This is a firm or individual that solicits or accepts orders for commodity contracts traded on an exchange and holds client funds to margin.

  1. Introducing Broker

This is a firm or individual that solicits or accepts orders for commodity contracts traded on an exchange.

  1. Commodity Trading Advisor
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This is a firm or individual which advice you on the trading of commodity contracts for compensation/profit.

  1. Commodity Pool Operator

This is a firm or individual that operates commodity pools

  1. Registered Commodity Representative

This is an employee, partner or officer  duly registered and licensed for conducting the activities of the mentioned categories.

You can avail further information about how to invest here, etc. at www.moneymindz.com or if you give a missed call to 022-62116588

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