WHAT IS COMMODITY TRADING?
A commodity trader is an individual or business that focuses on investing in physical substances like oil, gold or agricultural products. The day-to-day buying and selling are often driven by expected economic trends or arbitrage opportunities in the commodities markets. Commodity markets typically trade in the primary economic sector, including industries focused on collecting natural resources for profit. Most commodity trading involves the purchase and sale of futures contracts, though physical trading and derivatives trading are also common.
HOW DO YOU TRADE COMMODITIES?
Our Commodity Futures are available to trade. When trading commodities you speculate whether the price will rise or fall.
For example, You choose to trade GOLD and you think the value of the GOLD will rise against USD, you go long (buy). If you think GOLD will fall against USD, you go short (sell). If your prediction is correct, you make a profit, and if your prediction is incorrect, you would make a loss. Remember, losses can exceed deposits.
COMMODITIES
There is a range of commodities you can trade, including agricultural commodities such as corn, soybean, and wheat. It is the energy markets, in the form of oil and gas trading, and metal markets (like gold and silver), which tend to be more popular with traders these days. We offer prices on over 12 commodity instruments on our Next Generation trading platform, including Crude Oil (Brent and West Texas), Gold, Silver, Copper, and Natural Gas. The commodity markets are traded in a similar way to other types of financial markets, but there are some points to be aware of to avoid any shocks or surprises when initiating commodities trading.
Metals
Metals trading usually involves Gold, Silver and Platinum. The metals trading is closely linked to the outlook for the overall global economy and major currencies.
Energy
Energy commodities include crude oil and natural gas. Global economic developments and reduced oil outputs from established oil wells around the world have historically led to rising oil prices.
Agricultural Commodities
Agricultural commodities include corn, soybean and wheat. In the agricultural sector, grains can be very volatile during the summer months or during any period of weather-related transitions.
"An investment in knowledge pays the best
interest."
ONLINE TRADING PLATFORM
CUSTOMISABLE CHARTS
Access all the features you need to analyse price movements and conduct technical analysis. We have over 95 technical indicators, chart types and drawing tools built in.
NEWS AND INSIGHTS
Stay up to date with our market calendar and in-built Reuters news stream.
TRADE ON THE MOVE
Our native mobile apps for iPad, iPhone and Android mean you can trade Currency Pairs wherever you are, anytime.