Commodities trading involve the buying and selling of financial assets such as gold, silver, oil as well as soft commodities such as wheat, sugar or other consumer goods. Commodities play huge part on the global economy and their variable supply and demand creates volatility and price movements which can provide opportunities to traders and investors to profit from.
Commodity trading can be used as an alternative to traditional investment asset classes and can also be used to diversify a portfolio, hedge existing positions or purely for speculative purposes.
There are various commodity exchanges across the world. However participation in the commodity market can also be done using trading vehicles such as spread trading (spread bets) or using CFDs which are provided by many online trading brokers.
One can trade the price movement of a given commodity without actually buying and owning the underlying asset.
Tradable commodities fall into the following categories:
Disclaimer – Futures, CFD, Margined Foreign Exchange trading, Warrants, Options and Spread Betting all carry a high level of risk to your capital. Only speculate with money you can afford to lose. Futures, CFD, Margined Foreign Exchange trading and Spread Betting may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary.
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