Which Commodity Trading Contract Suitable for Individual Investors ?

Types commodity trading contracts are spot commodity contract, forward commodity contract, and futures commodity contract.

1. Spot contract
Spot commodity contract is an agreement in commodity trading that the delivery either takes place immediately or if there is a minimum lag , due to technical constraints, between the trade and delivery.

2. Forward contract
Forward commodity contract is an agreement in commodity trading between two parties to exchange at fixed future date a given quantity of a commodity for a price defined today

3. Futures contract
Futures commodity contract is similar to forward contract but is transacted through a futures exchange. http://discountfuturestrading.blogspot.com/

In my view, for individual investors, the futures contract is more suitable than others. What do you think about the best commodity contract in commodity trading?

What is Commodity Trading ?

Commodity trading markets are markets where to buy and sell raw or primary products.

Types of traded commodities:

• agricultural , such as : wheat, corn, soybeans, cocoa, coffee, sugar
• livestock & meat , such as : lean hogs, live cattle, feeder cattle
• energy, such as : natural gas, crude oil
• precious metals, such as : gold, silver
• industrial metals, such as : copper, aluminium
• rare metals , such as : germanium, cobalt, magnesium, rhodium, titanium
• other , such as : ethanol, rubber, palm oil, wool, polypropylene

Which type of commodities have you traded ? have any good commodity trading systems ? please share tips on commodity trading.

Discount Commodity Trading

Discount Commodity Trading blog will provides information and guidance in commodity trading. Let's learn about discount commodity trading together. If you have any experience in discount commodity trading, please share on discount commodity trading.