As commodities have been growing in popularity among savvy investors, they offer fertile territory for a financial copywriter looking to expand his clientele.
So here is a basic introduction to this lucrative niche.
Even though many individual investors haven't been directly introduced to the concept of commodities, they are often included in mutual fund investments incorporated in their investment portfolios.
Commodities refer to tangible goods such as crude oil, soybeans, gold, platinum and corn.
These tangible commodities are exchanged internationally on virtually every stock exchange as every global marketplace relies upon these goods for manufacturing and trade.
Commodities can be traded as a future or on a spot trade basis.
Spot trade refer to commodities which are settled immediately, or on the spot, rather than at a future point in time (futures).
To write about commodities, a financial copywriter must understand Futures Contracts To help investors understand commodities, the financial copywriter must be able to communicate the concept of "futures.
" Futures refer to contracts to buy or sell a commodity in the future, for a specified price and for a specified quantity.
A futures contract refers to an arrangement between a buyer and seller for a specific commodity.
Futures contracts executed between buyers and sellers consist of the following information: o Which commodity is being purchased or sold o The date the commodity will change hands o The quantity of the commodity changing hands o The price agreed upon between the buyer and the seller Who Invests in Commodities? As previously mentioned, many individual investors are unaware that they participate in the commodities markets as the investments are contained within mutual funds held within their portfolio.
A financial copywriter should be aware of several investor types who proactively seek commodities as a portion of their portfolios, primarily to act as hedges against other asset class movements.
The players that the commodities markets attract include: o Large Speculators- Institutional investors and commercial traders often trade commodities without taking physical possession of the goods.
They profit on the price differentials, providing portfolio growth in the form of profit for their respective investors.
o Small Speculators- While large speculators and commercial traders are more common within this marketplace, individual investors can hold commodities within their portfolios by working with a commodities broker.
How to Begin Trading Commodities Before investing into commodities, evaluate your portfolio's holdings, your personal investment risk tolerance, your investment time frame and your short term and long term financial goals.
Commodities act as one asset class among 22 current options, with each asset class working in relationship with each other.
Many investors select commodities as a hedge against other asset class downturns.
To begin trading commodities, you will need to establish a relationship with a commodities broker.
So here is a basic introduction to this lucrative niche.
Even though many individual investors haven't been directly introduced to the concept of commodities, they are often included in mutual fund investments incorporated in their investment portfolios.
Commodities refer to tangible goods such as crude oil, soybeans, gold, platinum and corn.
These tangible commodities are exchanged internationally on virtually every stock exchange as every global marketplace relies upon these goods for manufacturing and trade.
Commodities can be traded as a future or on a spot trade basis.
Spot trade refer to commodities which are settled immediately, or on the spot, rather than at a future point in time (futures).
To write about commodities, a financial copywriter must understand Futures Contracts To help investors understand commodities, the financial copywriter must be able to communicate the concept of "futures.
" Futures refer to contracts to buy or sell a commodity in the future, for a specified price and for a specified quantity.
A futures contract refers to an arrangement between a buyer and seller for a specific commodity.
Futures contracts executed between buyers and sellers consist of the following information: o Which commodity is being purchased or sold o The date the commodity will change hands o The quantity of the commodity changing hands o The price agreed upon between the buyer and the seller Who Invests in Commodities? As previously mentioned, many individual investors are unaware that they participate in the commodities markets as the investments are contained within mutual funds held within their portfolio.
A financial copywriter should be aware of several investor types who proactively seek commodities as a portion of their portfolios, primarily to act as hedges against other asset class movements.
The players that the commodities markets attract include: o Large Speculators- Institutional investors and commercial traders often trade commodities without taking physical possession of the goods.
They profit on the price differentials, providing portfolio growth in the form of profit for their respective investors.
o Small Speculators- While large speculators and commercial traders are more common within this marketplace, individual investors can hold commodities within their portfolios by working with a commodities broker.
How to Begin Trading Commodities Before investing into commodities, evaluate your portfolio's holdings, your personal investment risk tolerance, your investment time frame and your short term and long term financial goals.
Commodities act as one asset class among 22 current options, with each asset class working in relationship with each other.
Many investors select commodities as a hedge against other asset class downturns.
To begin trading commodities, you will need to establish a relationship with a commodities broker.
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