Bloomberg Commodities Futures

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would like info or reccomendations on established brokerage firms that I can invest through. I would like to start investing in futures.

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one based in chicago......Try Man, or Rosenthal Collings, or World-Wide. BEWARE. This is lethal trading. Please be careful.

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It's a zero-sum game, so someone is making money off all the people who lose. I don't invest in futures and gave up on options--just stocks and ETF's for me. Market Wizards is a good book to read about big winners in the futures markets. Several people talk about how they started small.

Please explain the highlighted sentences from the following paragraph: Futures contracts are most widely used for hedging. Hedging allows someone to offset the risk of fluctuating prices when he buys or sells physical supplies of a commodity. ********------------->For example, a copper mining company might sell a futures contract to lock in its sales price and protect its source of revenue should the market value of copper fall. (If copper prices rise instead, then the increased value of the physical metal offsets its loss on the futures contract). <-----******** At the same time, a wire manufacturer who buys copper to use as a raw material in the production of wire might buy a copper futures contract to lock in his raw materials cost. (If the price of copper falls, the cost advantage gained by buying the actual copper at a lower price offsets his loss in the futures market.) http://www.nymex.com/how_exchang_works.aspx? pg=1 Thanks for any help with this :-)) Um, this isn't homework. I have been out of school for YEARS. :-)) This is the part that I do not understand: "(If copper prices rise instead, then the increased value of the physical metal offsets its loss on the futures contract)." If the seller has contracted to sell at a certain price, then how can the increased value of the metal offset its loss? Didn't they already agree (contract) to sell at a lower price? I was reading up on the NYMEX for my job.... Thank you, pritz! :-)) Thank you, Ron!

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It works like this. Cu company has lots of copper in thier mines and it will take them 60 days to mine and smelt it and sell it in the market. They don't know what the price will be after 60 days but they know that right now they can sell copper for $xxx /unit. In future the price cud be more than this or less than this. If its more .. then its good ..but if it falls down.. then they loose ...so to protectagainst the decrease in the price . Cu company sells a future delivery contract for $xxx/unit and protect against the risk of decreasing price. To do so it opens an account with the exchange and deposits the margin requirement. But if the price were to increase then it cancells the contract and loses the margin deposited and sells copper at the increased market price. So the loss of margin is ofset by the profit earned by selling the copper at increased market price. Hope this helps :0)

I have an avid interest in the financial markets and I want to start investing in commodities. All I need is materials to read, and brokers I can speak to, and mostly, advice from experienced traders or enthusiasts.

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If you can pull up 100 bux a week that's good. But if you really can pull out 100 bux a week, you should do $400 a month, which will save you tons on commission.

I am interested in investing in Commodities but I am not sure how or how much money an initial investment would be. I have been trading stocks for a year now on sharebuilder but they do not have a section for Commodities / futures. Any advise or tips would be appreciated.

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