Coagro Corp: Basic Commodity Dictionary

Once you're familiar with these terms, it will all be easier for you.

The commodities market is mysterious. Believe it or not, for most people, this commercial activity is considered amongst the most complicated and strange within finances. For a variety of reasons, this has been the history of this business throughout all the years it has existed! For some people, learning about it has implied lurking in the unknown, but the worst came when they wanted to know what some specific terms meant.

For the people who are learning how to work within this field, knowing these terms meaning is fundamental to their projects' development and success. Because of that, we bring you another edition of our commodity dictionary, for you to learn some basic terms you’ll encounter with during your work. So, read along with us!

Invoices: notes for the selling or buying products and even transportation information are set on papers called invoices. They vary depending on the commercial operation nature, but most of them focus on describing products by their characteristics, as well as providing their enumeration and identification required by international authorities.

Free and fair trade: this is a term that defines commercial operations that are beneficial to producers. It offers them a legal protection to ensure profit margins set according to their investment in the production. This is regulated by international laws and considered the most important thing for traders.

Cross-border taxes: these are international taxes paid when products are transported within nations. Whether imported or exported, both governments have standards for these taxes, which are ruled by each country laws.

Investors: They are people who put money in for your business. You can find a variety of them, but most of them will be directly involved with your finances. While for some companies, they are almost unnecessary, for the overall business productivity, investors are fundamental.

Profit margins: they are all money or goods earnings which are outside of the investment balance you made, whether in physical or monetary investment. Profit margins are the result of your effort. They are your earnings. And when you learn how to work efficiently, you can increase your profit margins with a few simple steps and be more successful in your business.

Stock exchange: it’s an entity or association that’s the base of commodities tradings. In stock exchanges, properties exchange is not done in physical shape, but in the form of contracts that allow its holder to control the acquisition and sales process of a certain product within an established timeframe.

Product’s inspection: all products traded must abide by international trade rules. For that reason, specialized entities are in charge of monitoring products characteristics and quality. This is done by meticulous inspections, which are done by qualified professionals that can certify products through their analysis.

Do you have some extra inquiries about commodities? You can check out our article on frequently asked questions in trading to know more about them! Remember that Coagro Corp is here to offer you the best trading service while informing you of interesting facts and tips about this amazing business. Contact us to get professional assistance and an opportunity to work with people who focus on your welfare and your business profit!