Trading Commodities facts

While investigating facts about Trading Commodities Futures and Trading Commodities For A Living, I found out little known, but curios details like:

Onions are the only commodity banned from futures trading in the United States. The Onion Futures Act was passed in 1958 after two traders cornered the onion market in Chicago controlling 98% of all available onions.

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A failed experiment of an 18 year old English chemist in search of a treatment for malaria in 1856 produced one of the world's first synthetic dyes for the color purple, which severely impacted economic trade as some natural dyes were major commodities more valuable than silver or gold

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In my opinion, it is useful to put together a list of the most interesting details from trusted sources that I've come across answering what is spot trading in commodities. Here are 26 of the best facts about Trading Commodities Online and Trading Commodities Vs Stocks I managed to collect.

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1. The Eddie Murphy provision in the Dodd-Frank Act: making insider trading in commodities illegal, which was a major plot point in his 1983 comedy, Trading Places.

2. The Dodd Frank Consumer Protection Act had a clause in it called the Eddie Murphy Rule to prevent insider trading in the commodities market, in reference to the movie Trading Places.

3. Two billionaires from Texas attempted to buy up most of the world's supply of silver in the 1970s so as to re-sell it at an artificially high price. The New York Commodity Exchange altered trading rules specifically to stop them.

4. Coffee is the second most valuable commodity being traded today - second only to petroleum.

5. In some areas, laundry detergent has become such a hot commodity item, that criminals steal it from stores to resell. Police call the detergent "liquid gold" on the black market and it's been known to be traded or sold for illegal drugs.

6. There's a rule called "Eddie Murphy's rule" that prohibits trading based off insider information in commodities.

7. That, thanks to Vincent Kosuga and Sam Seigel who successfully cornered the onion market in the 1950s, onions are the only commodity in the United States that has a federal ban on futures trading.

8. It used to be legal to trade commodities based on insider info obtained from the government. It was only made illegal following the financial overhaul in 2010 and named the Eddie Murphy Rule based on the final scene in Trading Places

9. In 2006 the commodities trading firm Trafigura dumped 500 tons of toxic waste in Cote d'Ivoire rather than pay to have it properly disposed of. The waste was tied to 17 deaths and 30,000 illnesses; Trafigura then sued the BBC for libel over a report detailing the illegal dumping and cover-up.

10. Shrunken heads served as a valuable trading commodity between the Maori natives of New Zealand and European Traders from the early- to mid-19th century.

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You can easily fact check why commodities trading interview by examining the linked well-known sources.

Coffee is the world's second most valuable traded commodity, behind only petroleum.

Coffee is the world's second most valuable traded commodity, behind only petroleum. - source

Since 1990, the EU is building a Trans-European Transports Network (TEN-T) including road, rail, air & water corridors for commodities trade; it's part of a wider initiative including telecommunication and energy - source

Since the 90s you can trade weather as a commodity

Orange Juice is a traded commodity, just like crude oil or coffee. - source

What does arbitrage mean when trading commodities and stocks?

Pit, the popular commodity-trading card game, was developed by "the Sleeping Prophet" Edgar Cayce, who is considered by many to be the founder of the modern New Age movement.

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Trading commodities on inside information obtained from the government wasn't actually illegal until a 2010 finance-overhaul law, under a special provision often referred to as the Eddie Murphy Rule.

Actress Michelle Williams is the daughter of the famous commodities trader/author Larry Williams and she won The World Cup of Futures Trading Award at the age 17 (a trading completion for pro and non-pro traders). Her IMDB filmography says she was already 3 years into acting when she was 17!

During the First World War, the British had lots of rubber but needed optics for binoculars. The German had precision optics but needed rubber. They traded commodities with each other through the Swiss.

The @ symbol dates as far as 1536 when traders used it to signify the amount of commodity to be traded.

In 2010 Commodity Futures Trading Commission made a proposal inspired by the movie 'Trading Places' to make insider trading illegal on commodity market