In simple terms, the commodity market is a financial market that deals with raw materials (also known as a primary economic sector). Investors can access around 50 major commodity markets, commonly divided into soft commodities (such as coffee or cocoa) and hard commodities (such as oil or gold).
if you wanted to benefit from the price change of a specific commodity, you had to physically buy it. For example, if you wanted to invest in crude oil, you would have had to buy barrels and store them. If you wanted to buy gold, you would have had to buy bullions and put them in a safe deposit. Nowadays though, you can invest in the price of different commodities in the form of CFDs. What are CFDs? We’re getting there.
Types of Commodities
(Gold, Silver, Platinum and Copper)
(Crude oil, Heating oil, Natural gas)
Livestock and Meat
(Lean hogs, Pork bellies, Live cattle)
(Soybeans, Wheat, Cocoa, coffee)
Features of Commodity Trading:
- You get access to a variety of well-known commodities in the form of CFDs without having to physically purchase them.
- Maximize your portfolio’s potential by using leverage on commodities of up to 400:1 (where permitted by local regulations).
- Cut your portfolio’s expenses by opening deals on commodity CFDs with competitive spreads and without deal opening/ closing commissions.
- Gold, Platinum
- Crude Oil, Gas
- Soybeans, Coffee