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	<title>Hundred Dollar Business &#187; Commodities</title>
	<atom:link href="http://www.hundreddollarbusiness.com/category/commodities/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.hundreddollarbusiness.com</link>
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		<title>ETF Option Trading Strategies</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/etf-option-trading-strategies/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/etf-option-trading-strategies/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 20:11:36 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/?p=27</guid>
		<description><![CDATA[1. Buying a Call Option
A call option is the right to buy stock, or in this case an ETF. Up until the expiration date of the call, you have the right to buy the underlying ETF at a certain price known as the strike price.
2. Selling a Call Option
When you sell a call, you take [...]]]></description>
			<content:encoded><![CDATA[<p>1. Buying a Call Option<br />
A call option is the right to buy stock, or in this case an ETF. Up until the expiration date of the call, you have the right to buy the underlying ETF at a certain price known as the strike price.</p>
<p>2. Selling a Call Option<br />
When you sell a call, you take the opposite position of a call buyer. You want the ETF to go down. Selling options is a more advanced trading strategy than buying options. When purchasing options, the maximum risk is the purchase price and the profit is unlimited to the upside. However when selling an option, the maximum profit is the sale price and the risk is unlimited. Remember to be very careful and very educated before selling options.</p>
<p>3. Buying a Put Option<br />
A safer way to gain exposure or hedge the downside of an ETF than selling a call option. If you think an ETF will decline in value or if you want to protect downside risk, buying a put option may be the way to go. A put option is the right to sell an ETF at a certain price. </p>
<p>4. Selling a Put Option<br />
When you sell a put option, you give the right to the put buyer to sell the ETF at the strike price at ay time before expiration. This is the opposite position of purchasing a put, but similar to buying a call. You want the ETF to rise or stay above the strike price.<br />
It is important to note that selling options has more risk than buying options. That is not to say it isn’t profitable. The cost of that risk is factored into the price of an option. But if you are a beginner in the world of calls and puts, buying ETF options is the safer route.</p>
<p>Think twice before making an investment.</p>
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		<title>Different ETN Types</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/different-etn-types/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/different-etn-types/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 20:07:46 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/?p=25</guid>
		<description><![CDATA[1. Commodity ETNs
Commodity ETFs, commodity ETNs seek to emulate the price performance of a particular commodity or commodity index. Some of the more popular commodity ETNs track products such as gold, oil, and energy.
Commodity ETNs consist of derivative assets such as forward contracts, futures, and options. The goal is to be able to invest in [...]]]></description>
			<content:encoded><![CDATA[<p>1. Commodity ETNs<br />
Commodity ETFs, commodity ETNs seek to emulate the price performance of a particular commodity or commodity index. Some of the more popular commodity ETNs track products such as gold, oil, and energy.<br />
Commodity ETNs consist of derivative assets such as forward contracts, futures, and options. The goal is to be able to invest in a commodity like oil without actually having to buy a barrel of oil.</p>
<p>2. Currency ETNs<br />
Exchange traded note is a currency ETN. Like currency ETFs, these types of ETNs look to track the price of a particular currency. They can track a single foreign currency like the British Pound or track a basket of currencies like the Euro.<br />
Currency ETNs are a good way to hedge inflation risk or gain exposure into foreign markets. Another way to gain exposure to foreign investing is the use of foreign ETFs as well.</p>
<p>3. Emerging Market ETNs<br />
Emerging market ETNs is gaining foreign exposure. If there is a particular country or region that is up-and-coming, an emerging market ETN can help investors gain exposure to that market.<br />
Examples of emerging market ETNs are the iPath MSCI India Index ETNs that include Indian components such as financials, IT, industrials, utilities, energy, and consumer staples.</p>
<p>4. Strategy ETNs<br />
Strategy ETN. If you have a particular investing strategy you want to implement, strategy ETNs may be a boon to your portfolio. There are many types of strategy ETNs to utilize, such as exchange traded notes linked to the performance of the S&#038;P BuyWrite Index.<br />
ETFs are great assets to have in your portfolio, don’t forget about ETNs. Let’s start making a great investment.</p>
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		<title>ETFs History</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/etfs-history/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/etfs-history/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 20:01:58 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/?p=23</guid>
		<description><![CDATA[In 1989, when the first ETF showed up in Canada as the Toronto Index Participation Fund (TIP 35). Flash forward to 1993 when the first ETF appeared in the United States as the Standard &#038; Poor’s 500 Depository Receipts. Asia followed suit in 1999 with its first ETF, the Hong Kong Tracker Fund. And last [...]]]></description>
			<content:encoded><![CDATA[<p>In 1989, when the first ETF showed up in Canada as the Toronto Index Participation Fund (TIP 35). Flash forward to 1993 when the first ETF appeared in the United States as the Standard &#038; Poor’s 500 Depository Receipts. Asia followed suit in 1999 with its first ETF, the Hong Kong Tracker Fund. And last but not least (not really last either) was Europe’s Euro STOXX 50 market ETF launched in 2001.<br />
By 2002 there were 246 domestic and foreign ETFs across the globe. Europe led the league with 106, but the United States was not far behind with 102. Asia (including Japan) and Canada followed up with 24 and 14 ETFs respectively.<br />
At the end of 2008, there were 747 exchanged trade funds. That’s up from 629 in 2007 and even after a record number of closed ETFs (46). 164 ETFs were launched in 2008 alone.<br />
By the end of 2008, there was approximately $534 billion in ETF assets. And while that number is down 12% from 2007, it is still a respectable amount of money. But what you may not realize is that three major ETF designers hold an estimated 86% of those fund assets. Barclays Global Investors, SSgA and The Vanguard Group combine to hold the largest concentration of ETFs. However, there are some up-and-coming ETF companies like iShares and RevenueShares. There’s also some companies who are closing down their ETF department like Northern Trust did in 2008.<br />
As of the beginning of 2009, Barclays is launching two ETFs to track the Volatility Index (VIX) and iShares is launching two bond ETFs. RevenueShares has six new ETFs in the mix and State Street is at the helm with a mortgage ETF and a Treasury Bill ETF.</p>
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		<title>Different Types of ETFs</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/different-types-of-etfs/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/different-types-of-etfs/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 19:58:27 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/?p=21</guid>
		<description><![CDATA[1. United States Market Index ETFs
2. Foreign Market Index ETFs
3. Foreign Currency ETFs
4. Sector and Industry ETFs
5. Commodity ETFs
6. Derivative ETFs
7. Style ETFs
8. Bond ETFs
9. ETNs – Exchange Traded Notes
10. Inverse ETFs
11. Innovative ETFs
]]></description>
			<content:encoded><![CDATA[<p>1. United States Market Index ETFs<br />
2. Foreign Market Index ETFs<br />
3. Foreign Currency ETFs<br />
4. Sector and Industry ETFs<br />
5. Commodity ETFs<br />
6. Derivative ETFs<br />
7. Style ETFs<br />
8. Bond ETFs<br />
9. ETNs – Exchange Traded Notes<br />
10. Inverse ETFs<br />
11. Innovative ETFs</p>
]]></content:encoded>
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		<slash:comments>4</slash:comments>
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		<item>
		<title>A List of Gold ETFs</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/a-list-of-gold-etfs/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/a-list-of-gold-etfs/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 19:55:25 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/?p=19</guid>
		<description><![CDATA[Gold &#038; Metal Exchange Traded Funds
•  XME &#8211; the SPDR S&#038;P Metals &#038; Mining ETF
•  GLL &#8211; the UltraShort Gold ProShares ETF
•  PSAU &#8211; the PowerShares Global Gold &#038; Precious Metals ETF
•  UGL &#8211; the ProShares Ultra Gold ETF
•  AGQ &#8211; the ProShares Ultra Silver ETF
•  ZSL &#8211; the [...]]]></description>
			<content:encoded><![CDATA[<p>Gold &#038; Metal Exchange Traded Funds<br />
•  XME &#8211; the SPDR S&#038;P Metals &#038; Mining ETF<br />
•  GLL &#8211; the UltraShort Gold ProShares ETF<br />
•  PSAU &#8211; the PowerShares Global Gold &#038; Precious Metals ETF<br />
•  UGL &#8211; the ProShares Ultra Gold ETF<br />
•  AGQ &#8211; the ProShares Ultra Silver ETF<br />
•  ZSL &#8211; the ProShares UltraShort Silver ETF<br />
•  HUZ &#8211; Horizons BetaPro COMEX Silver ETF<br />
•  HUG &#8211; Horizons BetaPro COMEX Gold ETF<br />
•  SOGL &#8211; the ETFS Physical Swiss Gold Shares ETF<br />
•  PALL &#8211; the ETFS Palladium Physical Shares ETF<br />
•  PPLT &#8211; the ETFS Platinum Physical Shares ETF<br />
•  GLD &#8211; StreetTracks Gold Shares ETF<br />
•  DBS &#8211; PowerShares DB Silver Fund ETF<br />
•  DBP &#8211; PowerShares DB Precious Metals Fund ETF<br />
•  DBB &#8211; PowerShares DB Base Metals Fund ETF<br />
•  GDX &#8211; the Market Vectors Gold Miners ETF<br />
•  GDXJ &#8211; Market Vectors Gold Miners Junior ETF<br />
•  IAU &#8211; iShares COMEX Gold Trust ETF<br />
•  SLV &#8211; iShares Silver Trust ETF<br />
•  SIVR &#8211; ETFS Physical Silver Shares ETF<br />
•  DGL &#8211; PowerShares DB Gold Fund ETF </p>
<p>Gold &#038; Metal Exchange Traded Notes<br />
•  DGP &#8211; DB Gold Double Long ETN<br />
•  DZZ &#8211; DB Gold Double Short ETN<br />
•  DGZ &#8211; DB Gold Short ETN<br />
•  GOE &#8211; MLCX Gold Elements ETN<br />
•  JJM &#8211; iPath DJ-AIG Industrial Metals Total Return Sub-Index ETN<br />
•  JJN &#8211; iPath DJ-AIG Nickel Total Return Sub-Index ETN<br />
•  JJP &#8211; iPath DJ AIG Precious Metals Total Return Sub-Index ETN<br />
•  PGM &#8211; iPath DJ AIG Platinum Total Return Sub-Index ETN<br />
•  PMY &#8211; MLCX Precious Metals Elements ETN<br />
•  PTM &#8211; E-TRACS UBS Long Platinum ETN<br />
•  PTD &#8211; E-TRACS UBS Short Platinum ETN<br />
•  UBG &#8211; E-TRACS UBS Bloomberg CMCI Gold Total Return ETN<br />
•  UBM &#8211; E-TRACS UBS Bloomberg CMCI Industrial Metals Index ETN<br />
•  USV &#8211; E-TRACS UBS Bloomberg CMCI Silver Index ETN </p>
<p>ETFs and ETNs are a great investment especially when it comes to taxes.</p>
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		<title>3 Steps on The Secret to finding the Best ETF</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/3-steps-on-the-secret-to-finding-the-best-etf/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/3-steps-on-the-secret-to-finding-the-best-etf/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 19:51:30 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/2010/02/05/3-steps-on-the-secret-to-finding-the-best-etf/</guid>
		<description><![CDATA[•  Step 1
Analyze your portfolio. If your portfolio is well diversified and already contains physical goods, then you might want to buy a GOLD ETF to hedge against risk. When the market goes down, usually gold will go up. That way, your stocks will go down but your gold ETF will go up.
•  [...]]]></description>
			<content:encoded><![CDATA[<p>•  Step 1</p>
<p>Analyze your portfolio. If your portfolio is well diversified and already contains physical goods, then you might want to buy a GOLD ETF to hedge against risk. When the market goes down, usually gold will go up. That way, your stocks will go down but your gold ETF will go up.<br />
•  Step 2<br />
Use ETF screener to find the best ETF. Most ETF screeners can screen out ETF&#8217;s based on different criteria. You can use a screener to show you the past and future performance of any ETF. Some ETF Screeners have pre-built screeners to find the best ETF according to pre-defined criteria.<br />
•  Step 3<br />
Diversify your portfolio. Sometimes there is not a single best ETF for your portfolio. It might take two or three ETF&#8217;s.  ETF&#8217;s are similiar to mutual funds in the fact that they hold many assets. However, they can be actively traded unlink mutual funds.</p>
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		<item>
		<title>Invest in ETFs Step by Step Guide</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/invest-in-etfs-step-by-step-guide/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/invest-in-etfs-step-by-step-guide/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 19:40:07 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/2010/02/05/invest-in-etfs-step-by-step-guide/</guid>
		<description><![CDATA[•  Step 1
Remember that there are lots of foreign ETFs, think about the role ETFs will play in your portfolio. If you&#8217;re looking to find an ETF that mirrors an index like the Dow Jones, then you&#8217;ll be looking for different ETFs than someone who wants to invest in a specific industry.
•  Step [...]]]></description>
			<content:encoded><![CDATA[<p>•  Step 1<br />
Remember that there are lots of foreign ETFs, think about the role ETFs will play in your portfolio. If you&#8217;re looking to find an ETF that mirrors an index like the Dow Jones, then you&#8217;ll be looking for different ETFs than someone who wants to invest in a specific industry.<br />
•  Step 2<br />
Be precise. Approach your broker with the exact number of ETFs you want to buy. You have to pay a broker&#8217;s fee every time you buy or sell this type of security. The commission is the same no matter how many shares you&#8217;re buying, though, so small trades can sometimes cost you more than you&#8217;ll make.<br />
•  Step 3<br />
Protect your investment. Remember to set, buy, sell and hold orders on your ETFs. Just like with stocks, you can tell your broker to automatically sell your ETFs if they drop below a certain value. Many investors recommend automatic sale orders if your ETFs drop 10 percent in value.<br />
•  Step 4<br />
Diversify your ETF investments. You want to have no more than 15 percent of your money invested in one industry and a maximum of 10 percent of your total investment income put into any single ETF. These limits are standard for managing portfolio risk, but you can exceed them if you think it will give you a quick profit.<br />
•  Step 5<br />
Know what you’re investing on before buying. Some ETFs represent shares of many different companies and you&#8217;ll want to know exactly what you&#8217;re buying. You can usually get a detailed breakdown of the contents by visiting the issuer&#8217;s website or reading the prospectus.</p>
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		<title>Trading Commissions</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/trading-commissions/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/trading-commissions/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 18:30:49 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/?p=13</guid>
		<description><![CDATA[It is a valid question, but make sure you fully understand the answer before you make a decision on choosing a commodity broker based on trading commissions.
Since about 2005, full-service rates have typically ranged between $30 and $80. Remember, commission rates on futures contracts are paid per contract, not per order.
Comparing commissions are based on [...]]]></description>
			<content:encoded><![CDATA[<p>It is a valid question, but make sure you fully understand the answer before you make a decision on choosing a commodity broker based on trading commissions.<br />
Since about 2005, full-service rates have typically ranged between $30 and $80. Remember, commission rates on futures contracts are paid per contract, not per order.<br />
Comparing commissions are based on a round-turn rate. A round-turn rate covers both the buy and sell sides of a trade. A half-turn rate only covers the buy or sell side of a trade.<br />
The trading style of a full-service commodity broker will play a major part in the commission you will pay. If he wants to make trade recommendations every day, you should expect a commission rate somewhere near the low end of the range. If he only plans on making one trade every month or two, you should expect commission rates on the higher end.<br />
A commodity broker gets paid, but make sure you are paying for solid. It is highly unlikely your account will survive if you are a very active trader paying $80 per round-turn in commissions.<br />
Many new traders will choose a commodity broker based on commission rates. That is not always the best logic to follow. The main reasons for choosing a commodity broker should be whether you think the broker can make you money and you feel he will be a good partner to help you achieve you trading objectives in the futures markets.<br />
Most commodity brokers are willing to negotiate commission rates, especially for their established clients. If you are not able to negotiate lower rates when you open an account, you may be able to negotiate later in the relationship with your broker.<br />
If you have not been making money with your commodity broker, you certainly deserve a break in commissions. However, if you are consistently losing money with your broker, you may want to look elsewhere.<br />
Good commodity brokers are hard to find. I would rather pay more in commissions and consistently make money with a broker instead of take a chance on an unproven commodity broker. </p>
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		<title>3 Websites on Futures Quotes and Charts</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/3-websites-on-futures-quotes-and-charts/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/3-websites-on-futures-quotes-and-charts/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 18:29:32 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/?p=10</guid>
		<description><![CDATA[Delayed quotes are typically 10-30 minutes behind real-time prices. Most free quote services use delayed quotes. Real-time quotes are prices where the market is currently trading &#8211; hence the term, real-time. Most services will charge you a fee for real time quotes.
Prophet.net
An Excellent one-page format for futures quotes that are organized by sector. They have [...]]]></description>
			<content:encoded><![CDATA[<p>Delayed quotes are typically 10-30 minutes behind real-time prices. Most free quote services use delayed quotes. Real-time quotes are prices where the market is currently trading &#8211; hence the term, real-time. Most services will charge you a fee for real time quotes.</p>
<h2><a href="http://www.prophet.net/quotes/futureswatch.jsp" target="_blank">Prophet.net</a></h2>
<p>An Excellent one-page format for futures quotes that are organized by sector. They have links where each quote takes you to the respective chart. The charts also include techni<span id="change-permalinks"><a class="button" href="options-permalink.php" target="_blank">Change Permalinks</a></span>cal analysis studies.</p>
<h2><a href="http://futuresource.quote.com/quotes/index.jsp" target="_blank">FutureSource</a></h2>
<p>One of the most popular sites for futures traders that offer free quotes on futures and options and they have excellent charts with several technical studies.</p>
<h2><a href="http://www2.barchart.com/mktcom.asp?code=BSTK" target="_blank">BarChart</a></h2>
<p>There Futures quotes are organized in a one-page format. On the quotes page, you will see all the commodity and futures quotes separated by categories. The front month contract is always listed on this page. You can click the link on the commodity and it will take you to an extended list of all the different contract months and quotes for each commodity market.</p>
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	mso-hansi-font-family:Cambria; 	mso-hansi-theme-font:major-latin; 	mso-bidi-font-family:"Times New Roman"; 	mso-bidi-theme-font:major-bidi; 	color:#4F81BD; 	mso-themecolor:accent1; 	font-weight:bold;} .MsoChpDefault 	{mso-style-type:export-only; 	mso-default-props:yes; 	mso-ascii-font-family:Calibri; 	mso-ascii-theme-font:minor-latin; 	mso-fareast-font-family:Calibri; 	mso-fareast-theme-font:minor-latin; 	mso-hansi-font-family:Calibri; 	mso-hansi-theme-font:minor-latin; 	mso-bidi-font-family:"Times New Roman"; 	mso-bidi-theme-font:minor-bidi;} .MsoPapDefault 	{mso-style-type:export-only; 	margin-bottom:10.0pt; 	line-height:115%;} @page Section1 	{size:8.5in 11.0in; 	margin:1.0in 1.0in 1.0in 1.0in; 	mso-header-margin:.5in; 	mso-footer-margin:.5in; 	mso-paper-source:0;} div.Section1 	{page:Section1;} --><!--[if gte mso 10]> <mce:style><!   /* Style Definitions */  table.MsoNormalTable 	{mso-style-name:"Table Normal"; 	mso-tstyle-rowband-size:0; 	mso-tstyle-colband-size:0; 	mso-style-noshow:yes; 	mso-style-priority:99; 	mso-style-qformat:yes; 	mso-style-parent:""; 	mso-padding-alt:0in 5.4pt 0in 5.4pt; 	mso-para-margin-top:0in; 	mso-para-margin-right:0in; 	mso-para-margin-bottom:10.0pt; 	mso-para-margin-left:0in; 	line-height:115%; 	mso-pagination:widow-orphan; 	font-size:11.0pt; 	font-family:"Calibri","sans-serif"; 	mso-ascii-font-family:Calibri; 	mso-ascii-theme-font:minor-latin; 	mso-hansi-font-family:Calibri; 	mso-hansi-theme-font:minor-latin;} --> <!--[endif]-->Delayed quotes are typically 10-30 minutes behind real-time prices. Most free quote services use delayed quotes. Real-time quotes are prices where the market is currently trading &#8211; hence the term, real-time. Most services will charge you a fee for real time quotes.</p>
<h2>Prophet.net</h2>
<p class="MsoNormal">An Excellent one-page format for futures quotes that are organized by sector. They have links where each quote takes you to the respective chart. The charts also include technical analysis studies.</p>
<h2>FutureSource</h2>
<p class="MsoNormal">One of the most popular sites for futures traders that offer free quotes on futures and options and they have excellent charts with several technical studies.</p>
<h2>BarChart</h2>
<p class="MsoNormal">There Futures quotes are organized in a one-page format. On the quotes page, you will see all the commodity and futures quotes separated by categories. The front month contract is always listed on this page. You can click the link on the commodity and it will take you to an extended list of all the different contract months and quotes for each commodity market.</p>
</div>
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			<wfw:commentRss>http://www.hundreddollarbusiness.com/2010/02/05/3-websites-on-futures-quotes-and-charts/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>How to become a Successful Commodity Broker?</title>
		<link>http://www.hundreddollarbusiness.com/2010/02/05/how-to-become-a-successful-commodity-broker/</link>
		<comments>http://www.hundreddollarbusiness.com/2010/02/05/how-to-become-a-successful-commodity-broker/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 18:27:05 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commodities]]></category>

		<guid isPermaLink="false">http://www.hundreddollarbusiness.com/tmp/?p=8</guid>
		<description><![CDATA[Many who become commodity brokers do not survive past the first two years. The brokers who work hard and understand what it takes to be successful tend to have long and prosperous careers as commodity brokers. Are you one of them?
Being a commodity broker is not just about trading commodities. You have to be a [...]]]></description>
			<content:encoded><![CDATA[<p>Many who become commodity brokers do not survive past the first two years. The brokers who work hard and understand what it takes to be successful tend to have long and prosperous careers as commodity brokers. Are you one of them?</p>
<p>Being a commodity broker is not just about trading commodities. You have to be a salesman, a market analyst and you have to provide customer service to multiple accounts on any given day. Some days will be absolutely exhilarating and other days you will just be feeding that soon-to-be ulcer. You have to be always on your toes on the current trends.</p>
<p>First, you need to find out what objective the prospect has in trading commodities. Some are just curious and will never open an account, while a few will already have their checkbook in hand when they contact you. However, most of the prospective clients you will have contact with are serious about trading commodities and it is up to you to give them a comfort level where they will open an account with you.</p>
<p>I highly recommend that you do not hype any markets or fill your prospects with fantasies of getting rich through trading commodities. This will only lead to problems down the road – both legally and the fact that you will have a lot of explaining to do if / when things do not work out.</p>
<p>Make your goals reachable are realistic. Above all else &#8211; be honest. Answer their questions and equally explain the opportunities and risks. If the prospects like you and believe you are capable of making money for them, you should be okay in this department.</p>
<p>You should be researching the markets daily. People do not consistently make money in trading commodities without a lot of hard work. Read every book you can on trading commodities and design a thorough trading plan for yourself and your clients. Most importantly, you do not have to make your clients rich overnight. You should be shooting for a respectable annual return.</p>
<p>Remember to use the golden rule and treat your clients the way you would want to be treated. One of the main complaints of commodity brokers is that they don’t keep in touch with their clients. Many clients feel they only get a call when the broker wants something – like placing a trade and generating commissions.</p>
<p>Believe me, a phone call once a week to each client for an account update goes a long way toward your success as a commodity broker. Create a bond with them.</p>
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