What are the top 5 ways to avoid losses in commodity market?
Commodity markets have an incredible influence on the economy and the life of people. However, the price volatility is mainly affected by demand-supply factor. The other factors that affect the volatility in commodity prices are currency moves, geopolitical issues, economic growth and government policies. Generally, the commodities market is subject to rallies and crashes, so it is more vulnerable to speculation than the stock markets. An investor or trader must be prepared and ready to study how the market works before participating in commodity futures. Futures contracts unlike stocks have different expiry periods. As the futures platforms are principally intended for hedging with a view to reduce the risk in portfolio. The commodities traders segment who trade without fully understanding the fundamentals of the contract mostly lose their preliminary capital. Nevertheless, if we follow these particular rules before investing, it can reduce the threat of losses and maximise pr