Commodities trading
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Archived from the IMDb Discussion Forums — Economics, Business, Money, Finance
matjusm — 17 years ago(October 28, 2008 03:00 PM)
I want to clear some things up about commodities trading. At my university we had a presentation by a BP oil trader about oil trading and he said that basically what you're doing in oil trading is making contracts to pick up a certain amount of oil bought at a certain price at a certain place.
Firstly, does this principle apply to all commodities such as metals and agricultural products?
And secondly, how do investors like investment banks and hedge funds go about their trading? Since they obviously do not have the tankers or refiners that for example BP has to actually carry out the physical side of taking delivery of the raw materials. Do they just buy futures and then hope to sell them on to other investors before the deadline comes to go and pick up the goods?
And thirdly, is there any online game where I can trade in commodities at real market prices (but of course not for real money but juts "make believe money")?
mmm, doughnut
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