Commodities brokers are firms or individuals that trade commodities contracts on behalf of other investors, who are their clients. Conversely, commodities traders are firms or individuals who engage in these types of trades for their own benefit. In return for their efforts on behalf of their client investors, commodities brokers are paid a commission on each trade that is undertaken in this manner. Commodities contracts come in a number of different types of forms and are considered to be derivatives. For example, a commodity contract on pork futures is an investment in how the price of the underlying commodity (pork) will perform at a future date. The most common types of commodities contracts are futures and options, both of which are traded on behalf of investors by commodities brokers in the United State and some other countries around the world.
via Forextra - Forex Trading Explained: Tips, Strategies + More For FX Currency Trading http://ift.tt/1FP79nU
via Forextra - Forex Trading Explained: Tips, Strategies + More For FX Currency Trading http://ift.tt/1FP79nU