how to trade commodities

how to trade commodities

Exchange transactions are made only through the stock exchange brokers, which maintain records of transactions and store information about them in the next five years. The only exception is the transaction with the real goods (available on the exchange), which the participants of the exchange trades may conclude on its own behalf. But foreign legal entities and individuals are involved in the trade only through the stock exchange intermediaries, including the conclusion of transactions with the real goods.
Brokers should be distinguished from stock brokers, who are employees of the exchange, their activity is determined by job instructions, how to trade commodities: they shall not be entitled to make transactions for themselves or for clients.
In turn, the dealers can be described in a certain sense as a stock exchange "speculators", because in the exchange trade they only represent their own interests. In dealer's activity prevails not mediation, as an independent trade with a view to the resale of the goods.
how to trade commodities:
Exchange transaction is registered by the exchange contract concluded by the participants of the exchange trade in respect of the goods in the course of trading. Stock exchange transactions never committed in the name and for the account of the exchange, therefore, the responsibility for nonperformance or improper performance of an exchange transaction is a party to the transaction, and not the exchange or the exchange agent.
Commodity - it is not withdrawn from the turnover of goods of a certain type and quality, including standard contract or bill of lading for goods. Exchange goods may not be property and the objects of intellectual property.
Since the commodity is considered and the bill of lading the goods the subject of an exchange transaction can be "goods in transit". There are no obstacles to believe the subject of an exchange transaction and "the goods on a warehouse". Therefore, exchange goods may be in addition to the bill of lading warehouse certificate, certifying the right of the owner to receive the goods from the warehouse. The warehousing certificate as bills of lading, are of dual nature, since they are at the same time and title documents, and securities.
Common stock transactions are referred to as well as transactions SPOT. "Immediate" execution on them means a small interval of time between the conclusion and execution of transactions, as a rule, not more than 14 calendar days.
Forward, futures and option transactions form a group of forward transactions, also known as derivatives or derivative instruments.

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