Volatile Commodity Derivatives

  • Volatile commodity derivatives have been responsible for making fortunes for investors

  • There are a number of commodity derivatives to choose from

  • Commodity options are a great way for you to make a big profit if the price of the commodity increases significantly




Commodity derivatives, especially volatile commodity derivatives, have been known to make or break investors. Commodity options offer maximum benefits and minimum risks when done correctly, because you have the option to do something but this does not mean you are required to. Many investors have used options and commodity futures to make a fortune, and this is also a possibility for you if you have a solid trading strategy and can time the market perfectly. Volatile derivatives have wide price swings which can make them riskier, but just like any investment, the higher the risks of an investment the higher the possible rewards can be as well.

1. Oil Options

Oil options are volatile commodity derivatives which have been responsible for many investors making their fortune in the market. Just over a year ago a barrel of oil was more than one hundred and fifty dollars. Investors who used oil options to lock in a lower price and then called those options made a fortune off of these derivative products in a very short time. Oil options allowed investors who accurately predicted that the price of a barrel of oil was going to rise significantly to gain the rights to purchase oil at the current price at a point in the future, when the price was significantly higher.

2. Rice Commodity Derivatives

Commodity options involving rice are responsible for more than a few fortunes being made by investors. At the beginning of the year 2008, rice was up more than one hundred percent. The volatile market for rice was due in part to rumors that rice was going to become scarce, so many people were buying large quantities to store and hoard, and the price for many types of rice went through the roof. Investors who had options and futures contracts with rice had the opportunity to walk away wealthy if they traded wisely.

3. Gold Futures And Options

Gold is one of the most popular commodities invested in, along with other precious metals, and gold options and futures contracts over the last few years have made a number of investors very rich. The market price of this commodity keeps climbing, along with the popularity of these investments, with no end in sight. With the current tough times, market sings are inevitable and the gold commodity derivatives market can be volatile, but even with these drawbacks this commodity still has the capability to help an investor build a fortune again.

4. Wheat Futures

Wheat futures are commodity derivatives that speculate on the future prices of wheat. In the last two years the price of wheat has risen significantly around the world, and investors who were smart enough to get in on these derivative products before this price increase have made fortunes off of this market. Wheat is a staple food, and is normally in high demand. Because of this, wheat futures have been responsible for a number of fortunes made from these commodity derivatives.

5. Corn Options And Futures Contracts

Corn is a commodity that has seen increasing demand in the last few years, thanks in part to the role this crop can play in biofuel production. The price of corn is up by around seventy percent, which is a big percentage and price increase, and corn options and futures have helped make more than one future in the volatile commodity derivatives market. Corn is also a food crop and a staple used in many foods in America, and around the world, which makes this commodity in high demand and likely to increase in price again in the future.

0 to “ 5 Volatile Commodity Derivatives that Others Used to Make a Fortune”

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