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what is the difference between commodity trading and forex trading ?

is it the methods of margin trading and leverage? and which is better.
i mean in forex u can trade few commodities as gold for example, but u can trade also commodities through the futures exchange like CBOT And COMEX, so whats the difference?

Forex Trading is the direct buying and selling of currencies in the market. Its trading at the spot price.

The Commodity trading of Currencies involves the Futures trading market. There, its all about buying and selling of contracts with a price tag for what its worth at a date/time in the future.

For example, in the Forex market, you might want to sell USD for a CAD. At that moment in time, you will pay whatever the spot price is. In the Futures pits, you’ll be buying a contract for 100,000 Canadian dollars at a price they might be trading at in July. So as the spot market price changes, your futures contract’s value changes.

Either way is good, but I’d say the Futures Market is better because you get more leverage and protection in trading than on the spot market.

This entry was posted on Saturday, May 14th, 2011 at 12:05 am and is filed under Forex Trading Methods. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “what is the difference between commodity trading and forex trading ?”

  1. James Johnson on May 13th, 2011 at 11:39 pm

    Forex trading is most of financial trading and commodity trading is only commodity trading in india and other country
    References :

  2. Most good forex brokers give you the ability to trade both on their trading platform. Forex is trading currencies and commodity trading is commodities. http://www.bestforex-broker.com
    References :

  3. Forex Trading is the direct buying and selling of currencies in the market. Its trading at the spot price.

    The Commodity trading of Currencies involves the Futures trading market. There, its all about buying and selling of contracts with a price tag for what its worth at a date/time in the future.

    For example, in the Forex market, you might want to sell USD for a CAD. At that moment in time, you will pay whatever the spot price is. In the Futures pits, you’ll be buying a contract for 100,000 Canadian dollars at a price they might be trading at in July. So as the spot market price changes, your futures contract’s value changes.

    Either way is good, but I’d say the Futures Market is better because you get more leverage and protection in trading than on the spot market.
    References :

  4. the difference between forex trading and commodity trading is located on the type of goods you are trading.in forex trading, you trade the currency pairs like GBP/USD, EUR/USD and other currency pairs while you are trading commodity while on such goods, gold, silver, coffee, corn and other commodities.

    in the forex market you can get greater leverage and the market is also very liquid.
    References :
    I hope i was able to help. FOREX TRADING is my area of expertise and i am always glad to share what i know. if you need more information, feel free to visit http://WWW.IFOREXBROKERS.COM

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