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The Language of the Pit Welcome to the commodities pit. Unlike equities, where you buy a slice of a company, commodities are physical assets or raw materials. To trade them effectively, you must master a specific vocabulary that dictates liquidity and risk. If you skip this foundation, you will likely get liquidated before you see a profit. Let's break down the core concepts that separate the professionals from the gamblers. Spot vs. Futures: The Time Dimension The first distinction you must grasp is Spot versus Futures. The spot price is the current market price for immediate delivery. It reflects current...