Many investors like to trade in commodities, or tangible items that we use in daily life. Such commodities include items like corn (which we eat in our cereal), lumber (which provides our dining furniture), gold (in our watches), cotton (in our clothes), steel (in our busses and cars), and currency (which we use to buy things). This is just a small sample of the wide variety of commodities that are traded. Commodities are used in futures trading, where an investor can lock in a price for a commodity to be delivered at some future point. Therefore, futures markets permit buyers to obtain insurance against adverse price changes. Investors can view this information in a futures data feed, which is just one of type of market data feed that investors in commodities may wish to review in order to make sound investment decisions.
In sum, futures markets offer a way for investors to reduce price risks. Futures data charts display the progress of futures prices over a period of time. This historical data gives commodity investors the opportunity to project how futures prices will perform in the upcoming days, weeks, and months. Frequently updated future charts are important tools used for recognizing trends of particular commodities.
Futures contracts are utilized instead of actually holding the physical commodity for trading purposes, and they are like a contract because they carry expiration dates. The expiration dates vary between commodities. Futures investors consider these dates, along with the historical data, to determine whether a particular commodity fits their market goals.
There are two kinds of futures traders: The speculators and the hedgers. The speculators simply invest in futures the same way someone would invest in stocks–They’ll look to buy low and sell high to make a profit. The hedgers often include commodity producers, such as farmers or miners, who uses future trading as protection against future price changes in the product. Other hedgers may include banks, pension fund companies, and insurance companies who use futures contracts to protect against price fluctuations of their products in the future.
Futures traders find their investment information online and through mobile apps. This kind of up-to-the-minute futures data feed information keeps them ahead of the game. They look to futures exchanges in North America (such as COMEX and ICE Canada), Europe (such as Eurex and LME) and Asia, Australia, and Central and South America (for instance BM&F Bovespa) for market data feed information. Your website can host feeds that are specific to the futures trader through Barchart Market Data Solutions. Get more information at BarchartMarketData.com.