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Commodity Price Quote
Commodity Market Prices Quote:
Commodity futures prices are usually quoted the same way
prices are quoted in the cash market. They are quoted in
dollars, cents, and fractions of a cent, per bushel,
pound, ounce, Dollars, cents and increments of a cent
for foreign currencies. And they are quoted in points
and percentages of a point for financial instruments.
Cash settlement contract prices are quoted in terms of
an index number. The quotes are usually stated to two
decimal points.
One problem many of us have is what I call drunken
sailor trades. These are commodity futures contract
trades where we just can’t wait to get in at any price.
We throw out our discipline and jump in. Or maybe we
hear a well-respected commodity guru speaking about a
particular futures contract market and then jump in at
any price.
Commodity Futures Market Price Work:
For long-term position trading, buying options on
commodity futures can work well only if you can buy them
cheaply and way out in time. It's much more difficult to
buy them at a reasonable price once "the cat is out of
the bag". This is when the commodity futures contract
market takes off and the option premiums have expanded
greatly.
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