Questions tagged [commodities]
For questions related to commodities, commodity trading, etc. For specific trading questions, consider using a specific tag as well, e.g. futures, options, etc.
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Is Bitcoin taxable?
A few months age the SEC has regulated bitcoin as a commodity. Quick googling tells me than commodity wages are exempt from taxes and it looks like if a company can fully operate in bitcoin ...
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Why is investing in commodities recommended during a stagflation period?
Not looking for investing advice.
Instead, I would like to understand the underlying logic and mechanic as to why commodities could be beneficial as an investment during a stagflation. I believe there ...
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Is there a theta in futures?
Is there a theta/delta (like in options) in futures? I mean, if the spot price of the underlying (for example: crude oil) up $5, Is there a ratio that the front 6 months contract will be affected, and ...
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What are the implications of a futures, rather than asset, based ETF?
Asking very generally here because specifics obviously could change the action of an ETF and its underlying on a case by case basis. But generally, how does the creation of an ETF based on futures of ...
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Does an online trader affect futures prices as a real (physical) trader?
When I buy a future contract (1 contract), will I affect the price and volume and the other numbers, the same as a physical trader (if he buys 1 contract), Will the trade volume increased by two or ...
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Why buy consumable commodities?
These two questions explain why gold is a useful commodity and what happens when someone buys it.
Where can I buy real gold and sell it later as shown in market?
What intrinsic, non-monetary value ...
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Are commodities ETFs risky as commodities futures in needing margin calls and limited time to hold or they are like stocks?
Are commodities ETFs risky as commodities futures in terms of needing a large ammount of balance and margin calls and limited time to hold, or they are like stocks?
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Market Cap, NAV and finite resources
Gave a read through this question and I believe I understand the following:
NAV is the sum of a companies assets; represents the value if the company was liquidated
Market Cap is (shares outstanding ...
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What Might Cause a non-Parity Performance of, Say, a Gold ETF and the Underlying Price of the Metal at the Stock Market's Close on a Given Day
I have noticed that a Gold ETF and the underlying price of the metal do not necessarily correspond as one might expect.
For example, today 6/24, the price of gold was down approximately $9.00 at the ...
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Who are the non-speculative buyers of futures options?
I am trying to understand who would be a non-speculative buyer of options contracts on futures. There are a plenty of descriptions of how options work online, but mostly they omit this crucial part of ...
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Trading Places (1983 film): Is it really possible for futures exchanges to seize their members' assets?
I am trying to understand a scene in Trading Places (1983 film).
After Randolph and Mortimer Duke failed to corner the frozen concentrated orange juice (FCOJ) futures market, the following ...
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Can you explain to me, in what months are the futures and options on gold and silver listed, based on the CME description?
I read the following contract specifications from CME and couldn't figure out/understand it.
On Gold;
Futures: Monthly contracts listed for 3 consecutive months, any Feb, Apr, Aug, Oct in the nearest ...
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Can mere expectations affect oil spot price?
For example if confirmed information spread today that for some reason oil producers will increase their supply one month later, will this affect oil spot prices immediately like what happens in ...
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How to calculate the price of 1 Kilogram of each traded-commodity?
What does the quoted price of each of the below commodities represent ? (eg: Gold price below = 1 ounce ; cooper = ...1 ton ?)
How can I convert the listed prices to show the price of 1 Kilogram of ...
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Backwardation or Contango?
I was looking for graphs of backwardation and contango but I've found seemingly contradictory image results:
For instance this image and this one show contago on top, but this one shows it on the ...
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Is value investing applicable to precious metals?
Is it possible to apply value investing to precious metals? Value investing seeks to exploit discrepancies between price and value. The price of precious metals is widely known, but what about its ...
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Why not sell ETNs (Exchange Traded Notes) untethered from roll yield?
I rewrote these two questions with numbers and edits.
Pls explain like I'm 5. I don't understand any of the comments that just raise more questions! What the heck's "a predictable and ...
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What happens to cost of carry when a commodity is short-sold?
Say investor B has a gold bar, and must pay 1 dollar per day to store it. Investor A shorts gold, borrowing the gold bar from B, and selling it to investor C.
What I want to know is, what happens to ...
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Is the Market Cap of Commodities different from Shares?
How is the market cap of a commodity calculated?
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How does the swap and collateral work in this context?
The ETC (exchange traded commodity) is backed by swaps. The payment obligations of the swap counterparties to the Issuer are protected by collateral held which is marked to market daily. The ...
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What does "collateral" mean for an ETC?
I am looking at different Exchange Traded Commodities (ETCs). I noticed that some ETCs have a collateral level of 50% and other may have 100%.
What does this collateral number mean? Is it how well the ...
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JJN Barclays iPath Bloomberg Nickel Subindex ETN , What happened in 2018 to its price?
What happened to JJN price history? Barclays iPath Bloomberg Nickel Subindex Total Return ETN Series B
In January to March 2018? I am trying to understand its price history for analysis, don't see any ...
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What are some issues with ETN Commodities Indexes?
I am thinking of buying, two ETNs in Commodities Metals (Copper, Nickel). I am curious of risk factors for these.
Besides Barclays Bank going bankrupt during a market crash with unsecured ETN debts, ...
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One commodity, 2 ETCs, same specs, different return - why?
Background:
I hold silver ETC that charges 0.49% TER. There are cheaper ETCs that haven't been around when I entered the market. I am trying to assess if it makes sense to roll over. Interestingly, ...
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how to sell my silver coins for spot price?
According to https://www.cnn.com/2021/02/01/investing/gamestop-robinhood-stocks-explained/index.html the people who made GameStop shares surge in value may be moving onto silver. So let's say the ...
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Sale of the product is done many times before the first purchaser acquires it!
I'm a complete newbie, like I just searched how to make money trading stocks kinda newbie.
I read on a blog, "in the stock market, the product which is the subject of the deal is sold many times ...
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When commodity prices rise, do commodity production companies produce lower returns than the commodities?
Suppose I alone know that the price of a commodity will double next month, and will then stay at that level for years. There are two simple ways I could exploit this knowledge:
Buy the physical ...
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What exactly is the spot market?
I understand for commodities such as crude oil, there is NYMEX exchange where futures contract are listed and traded. Where exactly do I find the spot market? How does it work? Where is the price ...
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Can anyone explain these dips in the early 2000s coffee commodity market?
Please explain these dips
In the early 2000s coffee commodity experienced sudden massive short term dips that crashed prices into negative territory from highs of $50 to $100 each time.
Can someone ...
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What is the difference between crude oil futures and CFDs?
In April 2020 WTI crude oil futures price gone negative.
I trade crude oil CFDs using eToro and IqOption. On these platforms oil prices were different. On eToro the lowest price was around 7.3 while ...
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Can't place Buy orders, only Sell orders are allowed
I am new to trading and probably don't understand as well how the market works at certain limits.
I was trying to trade on IQ Option on a commodity (Oil WTI) to place a buy order, but it failed ...
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Do governments publicly predict when global oil demand = oil supply?
My grandparents fancy buying an ETF of oil companies like FENY in the future. So they`re seeking reasonably evidenced predictions like Rystad Energy's:
Do governments predict like this too? If so, ...
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What does it exactly mean by saying "buy/sell a futures contract"?
If I buy a crude oil futures contract at $20/barrel and sell it later at $10/barrel, I seem to buy/sell two different contracts. First, the entities of the contract change from me and exchange to ...
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What is the real cost for storing a barrel of crude oil at present?
The recent negative price of WTI crude oil futures contract indicates the receipt/storage of a barrel of crude oil can cost more than $37， which is unbelievable. Does anybody know the real cost at ...
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If I buy a crude oil futures contract at CME, must I sell the contract before the last trading day?
Does CME have different contracts for different traders, i.e., some traders must close their positions before the last trading day of their futures contracts while others can hold their position to ...
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What is the price of commodity at delivery day for a futures contract?
If I hold a futures contract till the delivery day, what price should I pay for the commodity delivered to me, the price of the futures contract when I bought it, the price of the last transaction at ...
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What happens if I do not honor a futures contract?
I have little knowledge about futures contracts. The recent negative price of crude oil spurred my curiosity about this stuff.
I read this post about buying/selling futures contracts. According to ...
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Calculating the price of oil
So I've seen a lot of questions about the oil crisis, but what I still didn't figure out is how the broker (providing you the ability to buy commodities) calculates their prices in respect to ...
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Total beginner starting to invest in oil
I'm a total beginner in investing (I know very, very, very, very little). I did some investing in crypto but that's it.
I want to start learning to invest and I want to start with investing in oil. I ...
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Could an individual make money off of oil futures? [duplicate]
There was another post about this but oil is going for -32 dollars a barrel. What if I acquired A million barrels of oil. I’d be sitting on 32 million with which I could theoretically use to buy an ...
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Are there places to long/short OIL contract futures, for the average person, until the closing time?
I am wondering if the average Joe could have made a profit yesterday, on the CLK2020CRUDE OIL FUTURES (MAY 2020) contract, that ended having negative prices.
I've seen that there are CFD products ...
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Why did the price of crude oil drop below zero today?
Something that’s never happened in the oil market just occurred: negative prices on an oil contract.
Why did the price of crude contracts drop below zero today?
Can I invest in crude contracts ...
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What does it mean for the price of oil to be negative?
The New York Times website currently has this graph, showing that the price of "West Texas Intermediate, May contract" is $-13.10. Does it literally mean that someone's offering $13.10 to ...
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Could I make money off of the negative oil price?
I saw the price of oil did something at about 1 PM Eastern time that is really bizarre: it went negative. This means that you get paid to take oil off the field. But, the oil price is negative now, ...
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What are the implications for institutional traders left holding a long WTI contract at expiry, unable to take delivery?
Given the historic drop in the front month WTI price today, I was wondering what the ramifications are for those professional traders who are left holding a long position. Note this problem won't ...
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Oil futures price convergence
Looking at oil prices now:
May: $20
June: $26
Spot: $20
According to the price convergence theory, the price of the May futures contract closely matches the spot price. This makes sense.
However, ...
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Can someone explain me the mechanism behind rolling future contracts and contango influence of my investment when buying a commodity ETF (like USO)?
Why is the return of an oil fund lower than the return on oil price? The contracts have to roll over at the end of the near expiration date. If it won't roll over then the contract oil barrels will be ...
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Why are oil price updates delayed over the weekend?
I normally check oilprice.com to find out the current trading prices of crude oil. During the week, the updated quotes are typically delayed by ~10 minutes or so. I am looking today, on a Saturday, ...
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Why does the futures market use stupendously high leverage?
From Investopedia:
The futures markets typically use high leverage. Futures contracts may only require a deposit of a fraction of the contract amount with a broker.
I know how margin trading works,...
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Is it possible to take advantage of the current low market by buying financial instruments connected with oil/natural gas?
I was really hesitant to ask this question, but based on the reception of this other question
Good investment options to take advantage of current low market
I hope this one won't be off-topic. Also ...
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