Commodity Markets: Operations, Instruments, and Applications

This book discusses the essential structure and working of commodity markets and the nuances of commodity trading. It includes detailed discussions on topics such as - basics of commodity market operations, commodity trading, and the risks encountered by producers and sellers, commodity exchanges and their functioning, the fundamentals of commodity derivatives, the dynamics of futures pricing, hedging and other objectives for participating in the commodity derivatives markets. It also illustrates the diversity of commodity contracts and includes some real world examples in the form of infamous disasters caused by commodity derivatives. Commodity markets have additionally provided investors with a whole new avenue to achieve superior portfolio diversification with commodity investments. This book will also serve as a valuable reference text for these investors.