Commodity Blog

Posts Tagged ‘index funds’

The commodity markets are influenced by many index funds that invest in the futures and affect the markets by giving or taking out a lot of liquidity especially near the expiration terms of the contracts. This video helps to understand how to calculate the weight of the biggest funds in the global commodity trading market. For commodity traders it’s important to know where the big players are investing now and where are they going to be tomorrow because during last few years commodity market is very speculative.

Many investors entrust their assets to the special index funds, whose managers diversify the actual investments between various commodities, doing all the necessary research. Index funds also “roll” the futures contracts for commodities, selling them near the expiration date and buying new futures contracts with a next delivery date available. Watch this video for a further insight on how the commodity index funds work and how they influence the commodity trading markets for all the participants.