Trade a wide range of commodities, such as energy, metals and agricultural products.
Commodities trading represents the buying and selling of set quantities of homogeneous, or near-homogeneous assets. Popular commodities include Brent Crude Oil, Gold and other precious metals and soft commodities such as coffee, cocoa, soya etc. Price movements in commodities are usually seen as bellwethers for the overall health of the industry that produces/consumes them.
Commodity prices can be impacted by factors such as adverse weather, seasonal availability, natural disasters and other non-market factors typically found in other financial instruments. Typically, commodities trading can be either speculative or for hedging purposes. Through careful analysis, traders can predict the potential direction of commodities prices and attempt to capture gains based on price fluctuations. The market is open 24 hours a day, 5 days a week.
One of the oldest markets
Essential to the economy
Influenced by global factors
Accessible to traders globally
What are the Most Traded Commodities
The most traded Commodities are those which have an established market of buyers and sellers. This translates to high levels of liquidity and lower trading costs.
Of the precious metals, gold continues to lead the way. Throughout history, gold has been a valuable commodity. The gold standard was in operation for almost a century and central banks continue to hold gold reserves. It is easily transferable for cash and often used as part of a hedging trading strategy as it often trades opposite to the United States dollar (USD).
Silver, platinum and palladium are among the most traded commodities. As they are considered a safe-haven investment, there is a wide range of Trading Strategies Using Precious Metals.
The widespread use of oil makes it one of the most in-demand commodities. Petrol and diesel are examples of refined oil which highlights its importance in all forms of transportation. Its value as a source of energy is the reason why oil prices are heavily scrutinized.
What Are the Benefits of Trading Commodities
- Leverage up to 500:1
- Choose from a wide range of commodities, such as energy, metals and agricultural products
- Enter and exit trades whenever you want to, 24/5, across almost all commodities markets
- Trade in any direction you think the markets will go, short or long, maximizing trading opportunities
- No price manipulation and no requotes
- Hedge Risks – Hedge your investment risks with high value assets, like gold and silver
- Benefit from low margin, low-cost trading, without compromising execution
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