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Saturday, September 7, 2013

Learn the ABC's of Futures Trading

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There is substantial risk of loss trading commodity futures and options. Before investing please understand that changes in the cash and commodity futures price do not typically correlate on a one to one ration with the corresponding commodity option price. Moreover, past trends in cash and futures prices on specific commodities do not necessarily forecast current profitability of options on those commodity futures. All known market news will not necessarily affect options prices since the news is usually already factored into the underlying futures price, as well as option value.
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