Globally, trading in Commodity Options and Futures market far exceeds that of Equities. Keeping in step with the times, Daiju Commodity Markets have started providing facilities to clients to deal, invest, or hedge in Commodity Markets.
With Daiju Commodity Markets at your side, you have access to in-depth research and arbitrage calls. Cash in on this great opportunity and take advantage of the boundless possibilities of the Commodities Market.
Energy: Oil, Gas, Coal, Ethanol, Electricity. Aside from food-based commodities, energy commodities are probably the commodities whose trading has the greatest effect on traders and non-traders alike. Fluctuations in the prices of any given energy commodity can have a substantial effect on the prices the consumer pays for heating, electricity and for transport. Since businesses also have to pay for all of these things, big changes in the price of energy commodities can also affect the prices of food, electronics and other consumer goods; it can even affect public services like government, hospitals and schools.
Oil - Oil as a commodity is one of the foundations of the global economy, so its trading on the commodity market is followed not just by commodity traders, but also governments, economists and companies of all types. It can be split into a number of separate commodities, which are based on either the geographical location where the oil was extracted, the physical characteristics of the oil, or a combination of the two. Brent Crude oil is primarily extracted in the North Sea, between the United Kingdom, Scandinavia and the European mainland. West Texas Intermediate (popularly known as WTI) Crude oil is primarily refined in the Mid-West and Gulf Coast regions of the United States. The OPEC Reference Basket, commonly known as the OPEC Basket, is a benchmark consisting of a weighted combination of the prices of oil from member countries of the Organisation of Petroleum Exporting Countries. These various varieties of oil are generally traded in contracts of 1000 bbl (barrels). Another type of oil traded as a commodity is RBOB gasoline. It is in fact a derivative of oil and is used as fuel for vehicles and some generators.
Heating oil also falls into this category. This is a refined fuel used for heating in heaters, boilers, furnaces and the like. It is traded on various exchanges and as with other types of oil the standard contract size is 1000 bbl.
Gas - As was demonstrated in the recent crisis where Russia restricted supplies to Europe as a means of putting pressure on The Ukraine, gas is an extremely important commodity. Natural gas is the primary gas-based commodity that is traded on the commodity market: it is used in electricity generation and both domestic and commercial heating across the world. It is traded on many exchanges. Contracts are measured in British Thermal Units (mmBTU), with the standard contract size being 10000 mmBTU. Propane is another gas commodity. It is also used for heating and power generation.
Coal - Despite recent predictions of the long-term decline coal as a primary source of power, increased industrialisation in the developing world and likely shortages of oil mean it is likely to become even more important in the short term. As a result of this, coal is traded profitably on a number of commodity exchanges worldwide.
Ethanol - Due to the growing demand for biofuels, ethanol’s popularity as a traded commodity is increasing, as it can be used to power vehicles. Traded in US gallons (the usual contract size being 29000).
Electricity - With power becoming ever more in demand around the world, a number of commodity exchanges have started trading electricity as a commodity. Not only does this enable traders to accumulate wealth through trading; it enables the more efficient transfer of electricity between major economies.
Oil, Gas, Coal
Renewable Energy Certificates
Agricultural Commodities Trading
Grain, Meat, Dairy, Lumber, Soft
Other Agricultural Commodities
Metals are used in all areas of industry and construction, from the building of houses and factories to the fabrication of machines, electronics and consumer goods.Learn more
Natural gas is the primary gas-based commodity that is traded on the commodity market.Learn more