oboloo Glossary

Commodity Strategy

oboloo Glossary

Commodity Strategy

Commodity Strategy

In commodities trading, a commodity strategy is a specific plan for buying and selling commodity futures contracts in order to profit from movements in the prices of the underlying commodities.

A commodity strategy can be designed to profit from either bullish or bearish price movements in the commodities markets. Bullish strategies are typically employed when an investor believes that the prices of the underlying commodities will rise over time, while bearish strategies are used when an investor believes that prices will fall.

There are many different types of commodity strategies that can be employed, and the best strategy for any particular trader will depend on a number of factors, including their investment goals, risk tolerance, and market outlook.