Offers a commodity trading education in futures trading. However, commodities are for the most part no more or less volatile or risky than stocks. What makes the large returns (and large losses) you hear so much about possible is the use of leverage, which allows you to buy and sell more contracts using much less capital than you would have to commit to trade the same dollar amount of stocks. The high percentage returns this kind of leverage allows also creates an commensurate level of risk. Offers a commodity trading education in futures trading.
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These low margins stem from the fact that commodities are contracts rather than actual assets; you're not exchanging anything, you're merely agreeing to do so at some point. Offers a commodity trading education in futures trading. Because almost all speculators will offset their positions to avoid taking delivery on physical commodities, the risk involved in positions is the price changes that may occur over the life of the position--not the underlying value of the contract. Offers a commodity trading education in futures trading.