COMMODITIES

Commodities can be defined as follows:
Something real object which is relatively easily traded, can be delivered physically, can be stored for a certain period and can be exchanged with other products with the same type, which usually can be purchased or sold by investors through the stock futures and More generally, a product of trading, including foreign exchange, financial instruments and indices.


Characteristics of the commodity that is the price is determined by supply and demand rather than determined by the distributor or seller and the price is based on the calculation of the price of each perpetrator Commodity examples are (but are not limited to): mineral and agricultural products such as iron ore, oil, ethanol , sugar, coffee, aluminum, rice, wheat, gold, diamonds or silver, but there is also a product called "commoditized" (no longer differentiated based on brand) as a computer

In linguistics, the word "commodity" is becoming known and used in England in the 15th century from the French language that is "commodité" meaning "something good" in quality and service.

The Latin root is called commoditas which refers to different ways of measuring the right of things, circumstances or the condition of the right time, good quality, ability to produce something or property; and value-added or profit.

In Germany called Die Ware, such as products or goods offered for sale.

In France called "produit de base" like energy, goods, or industrial raw materials.

In Indonesia can be interpreted as: merchandise, trade objects, or raw materials which can be classified according to their quality in accordance with international trade standards, such as wheat, rubber, coffee.

Commodity Trading
The risk in trading commodities, other than the failed promises, caused by price fluctuations. Price is determined by demand and supply in commodity markets. Demand is determined by the growth of population, the number of use, new uses and because of the substitution. Offers beribah due to the capacity of production (land area planted or built a new factory), season, weather good or bad, or the incentive of government restrictions, natural disasters or in war or peace. So many unpredictable factors. This has encouraged the emergence of the need for hedging. Needs will be fulfilled with the creation of hedging contracts on Bursa IN OUTSIDE going on. At first, the need for hedging is only felt in the trade of agricultural commodities, but the longer the need is felt for all sorts of commodities, including commodity finance, weather, economy, banking dlsbnya. To all that made the contract. Some of the contracts were traded on the stock that already called the Commodity Exchange, even though we have called the Exchange Contracts.

Dibursa trade commodity contracts carried out (contract) commodities in various countries such as in:

London Commodity Exchange which is now called Euronext LIFFE

New York Board of Trade (NYBOT)

Chicago Board of Trade, now merged with the CME

Winnipeg Commodity Exchange

London Metal Exchange

Chicago Mercantile Exchange

Multi Commodity Exchange of India

Jakarta Futures Exchange (JFX-Jakarta Futures Exchange)

Commodity Exchange
Commodity exchange is a meeting place between demand and supply of commodities and derivatives. The seller and the buyer of the goods in stock to meet these commodities. In addition to buyers and sellers, some brokers are known by the commissioner and the broker. The Commissioner took the position itself, while the broker can not hold a position.

Commodities are generally transacted is coffee, cocoa, sugar, soybeans, corn, gold, copper, cotton, pepper, wheat, and CPO (crude palm oil, crude palm oil), cotton, dairy, metal (gold, silver, nickel) and also uses commodity futures contracts as a benchmark asset. These futures contracts include spot prices, contract delivery, futures contracts and futures options or interest rates, environmental instruments, swaps, derivative contracts or transportation.

Commodity Trading
Commodity exchanges usually trade futures contracts on commodities. A farmer who plants corn can sell a new corn futures contract will dipanennya few months later and get a guaranteed price that will be received when the goods will be delivered after the harvest, and a producer of cereals and snacks to buy the contract today and get a guarantee that the price will not be rising at the time the goods delivered later. This would protect farmers from falling prices and also protect the buyer from price rises.

Speculators also make the purchase and sale of futures contracts to profit and provide liquidity to the futures trading system.

Commodity exchanges around the world (data is constantly changing every year)
Commodity exchanges throughout the world, among others:

Exchange
Australian Securities Exchange

Brazilian Mercantile and Futures Exchange

Bursa Malaysia

Central Japan Commodity Exchange

Chicago Board of Trade

Chicago Climate Exchange

Chicago Mercantile Exchange

Dalian Commodity Exchange

Dubai Mercantile Exchange

Dubai Gold & Commodities Exchange

Euronext

European Climate Exchange

HedgeStreet Exchange

Intercontinental Exchange

Kansai Commodities Exchange

Kansas City Board of Trade

London Metal Exchange

Memphis Cotton Exchange

Minneapolis Grain Exchange

Multi Commodity Exchange

National Commodity Exchange Limited

National Commodity and Derivatives Exchange

New York Board of Trade

New York Mercantile Exchange

Risk Management Exchange

Shanghai Futures Exchange

Singapore Commodity Exchange

Tokyo Commodity Exchange

U.S. Futures Exchange

Tokyo Grain Exchange

Winnipeg Commodity Exchange

Zhengzhou Commodity Exchange


The value of the commodity code
Futures exchanges to determine a minimum value where the price of commodities can be moved up or down. Minimum fluctuation is known as the "code" or "tick" or commodity tick. Each futures contract has a different size, quantity, valuation, etc., so any "code size" as used in the futures contract is very dependent on these variables. This size is very important because they reflect the possible rates available.

List of codes
Product futures contract size and value of E-Mini S & P 500 Index 0,25 $ 50 * $ 12.50 CME E-Mini Nasdaq Composite Index $ 20 * 0,50 $ 10.00 Australian Dollar A $ 100 000 * 0,0001 $ 10.00 British Pound £ 62,500 * 0,0001 CME Canadian Dollar $ 6.25 C $ 100,000 * $ 10.00 0,0001 CME Euro FX € 125,000 * 0,0001 $ 12.50 Japanese Yen 12,500,000 JPY * $ 12.50 Mexican Peso 0,000001 500 000 MP * 0, 000025 $ 12.50 NZ100.000 * New Zealand Dollar Swiss Franc 0,0001 $ 10.00 125,000 * 0.0001 $ 12.50 30 days FED Fund $ 5,000,000 * 0,005 $ 20.835 5 Year Treasury Note $ 100,000 * 1 / 64 $ 15.625 2 Year Treasury Note $ 200,000 * 1 / 128 $ 15.625 30 Year Treasury Bond $ 100,000 * 1 / 32 $ 31.25 Gold CBOT CBOT 100 oz * $ 0.10 / ounce $ 10.00 CBOT CBOT Silver 5000 ounce * $ 0.001 / oz $ 5.00 Silver New York E Mini-Ons 0.000 * $ 0.001 / ounce $ 1.00 500 Barrels of crude miNY * $ 0.025 $ 12.50 miNY Natural Gas 5000 BTU * $ 0.005 $ 25.00


Commodity Futures Trading Supervisory Board
Commodity Futures Trading Supervisory Board, abbreviated Bappebti, an echelon I units of the Ministry of Trade Republic of Indonesia, which is tasked with the development, regulation and supervision of trading activities of futures and physical markets and services. Bappebti head since March 2005
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