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Commodities

The process of trading commodities is also known as futures trading. Unlike other types of investements, like stocks and bonds, you do not actually buy ownership in a product. Instead, you are speculating on the future direction of the price in the commodity you are trading. For an item to be a cash commodity, it must satisfy three conditions. First, it has to be standardized. For agricultural and industrial commodities, it must be in a basic raw state. Second, pershiable commodities must have an adequate shelf life, since delivery of futures is deferred. Third, the price must fluctuate enough to create uncertainty, which means both risk and potential profit. There are many different online trading services. Shop around for the best services and prices.