2007-01-07 01:56:20 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
1) No.
2) Yes.
2007-01-07 04:38:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Some people use the commodity markets as a casino (speculators). However, another group of people who buy futures in the commodity markets do so for its original intention and that is to hedge risk. For example, a business who wants to lock in prices for oil because they use oil in the production of their products will go long a few contracts of oil. That way if the price of oil goes up then they have to pay more to purchase oil for the production of their products (let's say airlines having to buy fuel for their jets), but they will have made money on the contracts which offsets the expense of the higher prices they have to pay for oil.
The commodity markets are a zero sum game. For every long there is a short. You are transferring risk from one party to another.
2007-01-07 04:49:11 · answer #2 · answered by sirtitan45 4 · 2⤊ 0⤋
Commodities market is emerging as another avenue for investors who have a high risk appetite. as such the returns / losses are also equally high. India has 2 of them
NCDEX - www.ncdex.com and
MCX - www.mcxindia.com
both the companies are having a robust
2007-01-09 03:45:46 · answer #3 · answered by Raghav 4 · 0⤊ 0⤋
Its not at all a game. If some1 doesnt play with it crefully, chances are that it would vanished your all wealth and assets. Mind it, its a game if u consider it which is played globally. So neverever take it casually. It is the place where one can earn any amount of money within seconds and vice versa.
2007-01-08 22:03:05 · answer #4 · answered by jaimin t 1 · 0⤊ 0⤋