Other Investing Opportunities

Futures and Options

What does the term “stockout” mean, when I trade in commodities?

In commodity trading, scarcity of physical product leads to price volatility, as some investors see scarcity pushing prices up, and others see that production will eventually compensate, pushing prices in the opposite direction. When available tradable inventory of a commodity is exhausted, it is termed stockout, or “out of stock.” Information as to the stock inventory held by companies and governments is not easily available, and requires much research to discern how much output of a commodity is currently being stockpiled by any one entity.


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