Investment Specialist

Commodity Pyramid Trading is a process in which profit generated is used from existing positions for acquiring additional positions. It is a method in commodity futures contracts are traded in such a manner that when profits from single trade equal the current margin for the commodities, the profits are used for self-financing additional futures contracts. This process of self-financing can take any of the two methods: Pyramid Trading or Pillar Trading.

In the Pyramid trading method, one futures contract is added to your position, but from every active contract with every self financing step. Because of this, your position is doubled with each self financing step. Pyramid trades should exhibit a few characteristics which will make them highly profitable potential candidates. Some of these characteristics are: Read …