๐ Major global commodity markets.. Your gateway to global trading! The big three that control commodity trading globally are: CME Group (Chicago Mercantile Exchange) Intercontinental Exchange (ICE) London Metal Exchange (LME) ๐ Why are these markets so important? Commodity markets are massive global platforms where producers, farmers, factories, and brokers from all over the world come together to buy and sell commodities. Without these markets, it would be extremely difficult, for example: Selling Chilean copper to a Chinese factory Or selling wheat from an American farmer to a European buyer ๐ Whatโs their significance? Itโs not just about instant (Spot) buying and selling with direct payment; these markets are the global reference for determining fair prices for nearly all commodities worldwide. ๐ Summary: Commodity markets = the central global marketplace that efficiently and transparently connects producers and consumers across continents. ๐ Did you know that most prices for gold, oil, wheat, copper, coffee, and sugar that we hear about daily are determined in these three markets? Share this post if you found it helpful! #Commodity_Markets #CME #LME #Trading #Global_Economy #Investment
Today's lesson is about what commodities are #education $BTC Futures and options: How does an airline hedge against fuel price spikes? โ๏ธโฝ --- Did you know that fuel prices today may not be the same after 6 months? To avoid surprises, companies turn to advanced financial instruments like futures and options.
๐ First: What are futures contracts? These are contracts that allow you to buy or sell products at a fixed price, with delivery at a specified time in the future.
Delivery (exchanging the commodity at the agreed price).
๐ Second: What about options? Options give you the right (but not the obligation) to buy or sell later. While futures bind both parties to deliver the commodity or actually pay for it.
๐ Third: Are they just bets on the future? At first glance, these contracts might seem like "bets on the future price" of the commodity, but their true use is quite different.
๐ Fourth: Practical application (hedging) They can be used to protect real trades. ๐ Real-world example: An airline might buy a futures contract for fuel today to "lock in" the price it will pay in 3 months, even if market prices go up.
โ Summary:
Futures and options are not just tools for speculation; they are powerful hedging instruments used by large companies to protect themselves from price volatility.
๐ก Have you ever thought about how these contracts affect the price of your flight ticket? #Investmate
$USDC Today's lesson is about 'What are Stocks' Commodity markets play a crucial role, especially in the commodities themselves, as they are platforms where producers and intermediaries from all over the world buy and sell.
If these markets didn't exist, it would be extremely difficult, for instance, to sell Chilean copper to a Chinese factory - or for an American farmer to sell wheat to a buyer in Europe, and so on.
"The three main global commodity markets are: 1. CME Group 2. Intercontinental Exchange 3. London Metal Exchange
The significance of these markets lies not only in the fact that commodities are bought and sold there instantly on a cash and carry basis. $USDC
$BTC Let's continue today's lesson on commodities #ะพะฑัะฐะทะพะฒะฐะฝะธะต "When we think about commodities, it's helpful to picture four general categories: 1. Soft commodities, which include agricultural products like cocoa, corn, cotton, soybeans, rice, and sugar.
2. Livestock - also considered a soft commodity - includes live animals and animal meat products.
3. Hard commodities consist of mined and manufactured metals, such as aluminum, cobalt, copper, gold, lead, tin, nickel, platinum, and silver. 4. Energy comes in the form of crude oil, heating oil, and jet fuel. โข $USDC
$USDC Today's lesson is on the topic of ....commodities What are commodities$BTC Commodities are super important - Yet, only a few know how they actually work.
They're crucial because commodities impact many aspects
of our lives: they're in the food we eat:
the metals used in many products we
own, and the energy we consume.
At some stage in their preparation and delivery, all these things can
be converted back into commodities - they are
bought and sold in bulk on global commodity markets.
Trading Tips Know Your Limits When going long, traders pre-determine their acceptable profit and loss levels. They set a stop-loss level in case the market goes against their expectations, allowing them to stick to their plan. These limits help manage potential losses and prevent traders from becoming overly greedy if the price spikes to an unsustainable level. Stick to your limits and plan your trades wisely.
Today's lesson is about what stocks are #education Stocks can be a great way to earn dividends and capital gains from your investment. Just leaving your cash in a savings account won't give you that double whammy of interest. That's good news. 17/20 The downside is that you can lose your capital if your stock prices drop, and the company might cut or cancel its dividends, but these are risks you should always keep in mind when investing in stocks. 18/20 Checklist Stocks are pieces of a company's capital. If you invest in them, youโll earn capital appreciation and profits, but you canโt use any of what was mentioned. The risk is limited to your investment, but you could lose it all. 19/20 Checklist Many factors affect stock prices. Even so-called experts and full-time market analysts often get it wrong. But if you're lucky, vigilant, and willing to take the investment risks in stocks, then you can make money. 20/20
Today's lesson: What are stocks? #education Then you need to think about supply and demand for stocks in the market. The more shares available, the lower 13/20 But remember, one of the biggest advantages of very large companies (like BP, Shell, HSBC, Apple, etc.) is that they are generally highly liquid. There are always shares available in the market to buy and sell. 14/20 Then there are the overall market trends. These are reflected in indicators like the FTSE 100 and the S&P 500 and the Dow Jones Industrial Average. In other words, the entire market can be positively or negatively affected. 15/20 Company announcements, political events, news releases, interest rate changes, and broker reports on whether large investors are buying or shorting, and sometimes just an internal "feel" in the market - there are so many factors that can influence stock prices at any given time. 16/20
Today we discussed the topic of stocks #education You can buy or sell stocks through contacting a broker or banks that offer stock trading services. The easiest way to buy or sell is through an online trading platform provided by these companies linked to a bank account. 9/20 You'll see stock prices indicated with two prices: the bid price and the ask price. 10/20 The bid is what theyโll pay you for your shares when selling them. The difference is called the spread - and that's the profit the broker makes from the stocks they buy and sell. โ 11/20 It would be pretty straightforward if the profitability of the company was the only thing affecting its stock prices. But there are actually a lot of factors to consider. The current strength of the company is definitely important - but owning shares is a bet on the company's future performance." 12/20
Today's lesson on what stocks are #education There are two things to keep in mind Stocks can either dip or pump, and they can become worthless if the company goes belly up). Secondly, companies may not pay dividends at all but prefer to hoard their profits. 5/20 Tech companies often do this - so investors gamble that the company will thrive and that stock prices will moon. 6/20 It's technically possible to buy shares in private companies. Let's say a friend or relative starts a business and you invest in it. Youโll get shares but they will likely be illiquid. Youโll have a tough time selling them, and there might be restrictions on their sale. 7/20 The most liquid markets for stocks are public financial markets or exchanges like the London Stock Exchange, NYSE, and NASDAQ, along with AIM, Euronext, and the Hong Kong Stock Exchange. 8/20
Let's kick off today's lesson on what stocks are #education Imagine you own a slice of a company. That's what happens when you buy a share. Stocks are how companies distribute the cash they raise to run their operations. This cash is called capital or equity. โ1/20 So, if a company divides its capital into 100 shares with a nominal value of ยฃ1, its issued capital would be ยฃ100. โ 2/20 However, potential shareholders might be willing to pay more for these shares, let's say ยฃ1.50 each. Therefore, its market value would be 150 - 100 ร 3/20 "Shares can be worth investing in for two reasons. First, their value might increase, as in our example. If youโre the investor, that means youโll gain capital appreciation when you sell them. Second, companies might also pay dividends - a portion of their profits to shareholders. 4/20
The top six airlines in Europe - EasyJet, Ryanair, British Airways, Iberia, Air France-KLM, and Lufthansa - faced losses of up to โฌ140 million per day during and after the eruption of the Icelandic volcano in 2010. This also crippled European airlines in the stock markets. Airline stocks dropped between 3.5% and 4.5% in the days following the volcanic eruption, with Germany's largest airlines, Lufthansa and Air Berlin, losing 5% of their value as numerous European flights were canceled. The Eyjafjallajokull eruption is a prime example of experiencing abnormal returns due to natural disasters.
Lesson Four on Market Fundamentals #education 17/24 Keep in mind that stocks with low liquidity can have a wider spread because they may not be traded frequently. It is 18/24 And for some stocks, the bid-ask spread doesn't vary much. That's because some stocks are subject to high research, and their performance is consistent. 19/24 If you're day trading, the bid price and the ask price are crucial as the spread can significantly impact your daily profits. 20/24 Also, keep in mind that if you're tracking the price of something on a website, you're only seeing another batch price for that stock. You might pay more or less if you decide to buy. 21/24 Checklist What affects the spread? Availability - how easy it is to trade a company's stock. Volume - if a large quantity of shares is traded quickly. 22/24 Checklist What affects the spread? Popularity - high-priced stocks can have a large spread. Market volatility - whether itโs bad or good news, or economic or company-specific. 23/24 Watch the gap! The difference between the bid and ask has narrowed over the years for investors. This is partly due to technology and increasing demand, which helps to reduce costs. 24/24 Watch the gap! This means that more of what you invest ultimately contributes to long-term stock market performance.
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