Why Trade Commodities
Having a variety of commodities in your trading portfolio can be a great addition as it brings diversity. Commodities do not pay dividends, at the same time they do not go bankrupt.
Commodities are basic items of consumption of the worldwide economy. Do you have an opinion on the price movements of Gold, Silver or Coffee? Act on it! Commodities are traded around the world on different exchanges and are usually traded as future contracts.
On our platforms, we provide CFDs , which are contracts, based on the price of an underlying asset, that don’t grant ownership of the physical goods. This means that you don’t have to actually own the asset, yet you can trade it whenever you want. Quite convenient that you won’t have to have 100 barrels of Oil delivered to your front room! And probably not very secure having bars of Gold stored at your home! Instead, you will speculate on whether you think the price of the asset will move up or down.
You can trade a wide range of markets from metals to energies and more through CFDs, with Today Markets.
Trade hard or soft commodities on our advanced Fx Trader & MetaTrader 5 trading platforms.
Trade on the go anytime, anywhere with our innovative trading app.
Autotrading solutions available, including expert advisors and copy trading platforms like Market Trader.
- Start today with a small amount and trade up to 10:1 leverage available to you
- Get competitive spreads
- 24/5 live client support in your language
At Today Markets you can trade commodities online easily. Try hard or soft commodities trading with the leading regulated broker and enjoy all the benefits that go along with it.
If supply and demand balance out, prices should stay the same. However, any time the market thinks the supply will be lower due to weather or production cuts, prices tend to go higher, and vice versa; higher supplies tent to lead to lower prices.
Production of these commodity prices can be affected by the following; weather, crop diseases, production issues with staff, political and economic environments which form additional charges such as taxes, trade laws, subsides from governments etc.
Connections between some of the worlds most traded commodities and Fx pairs are common. For example, the Canadian dollar (CAD) is connected to oil trading prices since Canada is a large exporter of oil. If you are aware of these common connections, then monitoring them and trading at the right time are important to making the right decisions in trading. It should be noted that most commodities are priced in US dollars, and thus it would be wise to monitor the dollar index in order to better forecast the price dynamics. We allow Fx trading from the same trading platform, so you can use these correlations to your advantage .
When there is inflation, the price of a commodity usually changes accordingly.