Overview
Commodities Fundamentals Overview
This course provides an in-depth overview of commodities trading in capital markets. We will introduce the key features of commodities and go over the major commodity categories with their key drivers. Then we will explore how commodities are traded in the derivatives markets using futures and options. We will demonstrate common commodity trading strategies such as hedging, cash and carry arbitrage trading, and monthly rollover. Finally, we will discuss commodity spread trading strategies such as intramarket spreads, intermarket spreads, and strips.
Commodities Fundamentals Learning Objectives
By the end of this course, you will be able to:- Define commodities and their key features
- Identify the major commodity categories
- Discuss the drivers of the commodities in different categories
- Undertake commodity trading strategies using futures and options
- Explain commodity spreads and common spread trading strategies
Commodities Fundamentals Is a Required Course of CFI’s CMSA® Program
CFI’s Capital Markets & Securities Analyst (CMSA)® program covers all the foundational, intermediate, and advanced topics about sales and trading, investment banking, and asset management. This program teaches you trading strategies used in the finance and capital markets industry. It is ideal for students who want to trade different asset classes. The program is completely online, so you can take it at your own pace anywhere in the world. Common career paths for students who take the CMSA® are sales & trading, asset management, wealth management, treasury, risk management, and other capital markets careers.
Who Should Take This CMSA® Course?
This introductory commodities course is perfect for students interested in commodities derivatives and trading strategies. This course provides a comprehensive overview of commodities. It is designed to equip anyone who desires to begin a career in investment banking, sales, and trading, treasury, or other areas of finance that require an understanding of commodities.
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See All Certification ProgramsWhat you'll learn
Lesson
Multimedia
Exams
Files
Commodities Overview
Major Commodity Categories
Grains and Oilseeds
Main Drivers of Grains and Oilseeds
Soft Commodities (Softs)
Livestock
Interactive Exercises 2
Energy - Crude Oil and Gasoline
Energy - Natural Gas and Electricity
Interactive Exercise 3
Metals - Base and Gold
Metals - Silver, Platinum, and Palladium
Differences Between Commodities
Interactive Exercise 4
Midway Check-in
Commodity Trading Strategies
Commodity Futures Contract
Commodity Futures Contract Refinitiv Example
Commodity Futures Available Contracts Refinitiv Example
Using Futures to Hedge
Interactive Exercise 5
The Relationship Between Commodity Spot and Futures Prices
Cash and Carry Arbitrage
Cash and Carry Arbitrage Case Study
Monthly Rolls
Interactive Exercise 6
Commodity Options Contracts
Value on Expiration Date
In-the-Money At-the-Money Out-of-the-Money
Interactive Exercise 7
Options Case Study - Part 1
Options Case Study - Part 2
Options Case Study - Part 2 Summary
Course Summary
Qualified Assessment
This Course is Part of the Following Programs
Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.
All Capital Markets & Securities Analyst (CMSA)® Courses
- Skills Learned Trading strategies used in the finance and capital markets
- Career Prep Work in capital markets, whether on the buy-side or the sell-side
Financial Planning & Wealth Management (FPWM)® Certification
- Skills Learned Financial Learning, Business Development, Investment Management, Practice Management, Relationship Management
- Career Prep Financial Planner, Investment Advisor, Portfolio Manager
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