Investopedia

Continue to Site »

Commoditization

Filed Under » ,
Dictionary Says

Definition of 'Commoditization'

1. A situation when illiquid financial contracts are changed or modified in a way that promotes trading and results in a more liquid market.

2. Making a product into a commodity.
Investopedia Says

Investopedia explains 'Commoditization'

1. While many consider this sort of adjustment worthwhile, some view commoditization as a cause of price fluctuations.

2. When a product becomes indistinguishable from others like it and consumers buy on price alone, it becomes a commodity.

Articles Of Interest

  1.

    How Companies Use Derivatives To Hedge Risk

    Derivatives can reduce the risks associated with changes in foreign exchange rates, interest rates and commodity prices.

  2. Reducing Risk With Options

    If you want to use leverage to your advantage, you must know how many contracts to buy.

  3. Moral Hazards: A Bump In The Contract Road

    Learn how this phenomenon can cause a party in an agreement to behave differently than expected.

  4. Solving Mixed Options Problems On The Series 7

    Learn to ace the questions that involve both options contracts and stock positions.

  5. Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.

  6. Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.

  7. The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.

  8. Trading Is Timing

    Learn how to make gains even if you don't get in at the right time.

  9. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.

  10. Exploring Non-Dollar Currencies For Forex Trading

    Learn how investments in foreign currencies can diversify your portfolio.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => SEG (Active Traders) [1] => SEG (Active Traders:Instrument-Options&Futures) [2] => SEG (Investors) [3] => Options And Futures [4] => Markets ) time:19ms