“If you buy at the right time, you can make a mountain of money in commodities,” says financial magazine Forbes. ( and here at Cannon we would also like to remind you of the same possible large risk when you buy or sell at the wrong time….) Commodities don’t usually move at the same pace as the stock market, continues Forbes, so they can diversify your investment portfolio and lower the risk factor.
You need a commodity futures & options broker to facilitate your commodities trading. Commodities brokers buy or sell commodity contracts for a commission, and commission rates are usually paid per contract. A completed buy-and-sell transaction in the commodities market is called a round-turn.
Commodities futures brokers’ clients can be hedgers (people who use derivatives contracts to manage risk) or speculators (those who take a risk in hopes of greater profit). If you handle your own account, you are known as a self directed trader. Continue reading “What is a Commodity Broker and Types of Commodity Brokers”
