Commodities University

Many regular traders lack clarity in commodity trading. In this article, we have covered some basics of commodity trading and some effective  commodity strategies .  Read on for more. Definition of Commodity Trading Commodity trading is essentially an integral part of the primary global economy. This stands to reason: scarce, natural resources are necessary for any society or culture to maintain and grow. Commodity trading can be split into physical and financial transactions so that buyers and sellers can more readily connect. Types of commodities Commodities come in three categories: energy, metals, and agriculture. Czarnikow imports agricultural commodities - like sugar, fruit, and dairy products. In addition, renewable energies are included in the portfolio. These alternative energies can also power cargo ships that transport goods around the globe. The three markets are closely related to one another. What is physical commodity trading? Physical trading will take products...

  Learn more about the Delta Hedge Ratio and how it is used in commodity strategies for how many derivatives contracts are needed to hedge against a possible move of the underlying asset. In this article, we'll take a look at various day trading commodities . These include delta, gamma, theta, and vega. Figure 1 below shows these indexes in graphical form. First, we'll examine delta, an index that's very important when discussing combined and actual positions related to selling options. Understanding Simple Delta Delta is a mathematical term that measures the degree of change (to price) in an option relative to the underlying asset. For example, if we measure a delta value of 0.5 (or 50%), the option price will increase by about 50 cents when the underlying stock price rises. Learn more about the Delta Hedging Ratio and what it allows you to very exactly measure. The Delta ratio is a very important concept in options trading and can tell you exactly how much protection an ...