Commodity Trading

An absolute pre-requisite for anyone considering trading in commodity contracts, whether it's sugar or stock indexes, pork bellies or petroleum, is to clearly understand the concept of leverage as well as the amount of gain or loss that will result from any given change in the futures price of the particular futures contract you would be trading. If you cannot afford the risk, or even if you are uncomfortable with the risk, the only sound advice is don't trade. Futures trading is not for everyone.

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