Commodities – the Oldest Trade Around
The history of commodities trading is quite simply the history of financial markets in a nutshell. The first human trade was a barter of physical assets – a knife for a fur, an apple for a steak, and so on. Consequently, the growth of commodities markets parallels the growth of human societies; and the creation of the blockchain seems perfectly suited to solve over-leveraging of contracts versus substance in commodities markets.
At the
Queensway Academy, we’ve created an entire curriculum that takes you through the nuts and bolts of commodities trading and introduces the student to the concepts and workings of financial markets. Why are commodities different from other physical assets? What are ticks and points, and why do they differ from one commodity to the other? And just how complex are commodities contracts and derivatives?
We’ll show how futures, options and forwards were created to insure the commodities producer against the qualms of nature and the fickleness of human consumers. And we’ll learn how to analyse the indicators so that the next surprise won’t leave us with our oil barrels leaking.
Interested in learning about the most fundamental market of them all? Learn how to Invest in Commodities.
Commodities markets are ruled by supply and demand. But as opposed to the technical aspects of these, the fundamentals here rule: What are the geo-politics surrounding the supply of oil and soybeans? What makes an almost ineffectual metal a reason to go to war, enslave entire continents and serve as the most vibrant go-to asset in times of economic turmoil? Learn how to trade commodities.