HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

LegacyFX: Commodity trading benefits


CFD Trading is a derivative financial instrument, and it is an abbreviation for "Contract for Difference". CFDs are of interest to traders who want to boost the amount and quality of their investments significantly. CFDs allow traders to carry out transactions on the probability of rising or decline in a financial instrument's price. The gain is determined by the difference between the price that the instrument was bought for and the price that it was sold for.

Commodities


Most brokers allow for the investment of an extensive list of precious metals (gold, silver, platinum, etc.), agricultural products (wheat, corn, coffee, cotton, sugar, etc.), and energy products (oil, natural gas, etc.).

With access to this market through our trading platform, it is possible to trade these goods and take advantage of leverage up to 400: 1 on your investments, allowing you to trade with values up to 400 times the value of your account.

What does commodity trading mean?


The Forex trading term: Commodity is defined as "a good that can be exchanged for another good of the same type." Therefore, trading in commodities refers to the purchase and sale of those commodities around the globe.

Many investors in global markets tend to trade commodities with CFD for various commodities since it allows profit to be made on ongoing operations with both higher and lower prices.

Since CFD trading is a form of margin trading, the initial quota should be lower than it is in the case of basic commodity purchase, but there is an exposure to the risk of complete movement.


The most precious commodities can be categorized into four categories:

While precious metals and energy commodities are common, agriculture includes crops such as wheat, and cultured commodities refer to coffee, sugar, and cocoa.

Gold, silver, and crude oil are considered the best known and most traded commodities through CFD.

Many factors affect commodities, such as 'productions,' which are significant factors in the fluctuation of prices, with seasonal changes affecting the value of crops. But the most influential factor is the offer and demand price.

Storage capacity, especially with energy commodities, is considered the main factor that can affect these commodities' prices.


Commodity trading benefits

#source


RELATED

Trading on Forex: A Primary Source of Income

There are a lot of discussions about trading within the boundlessness of the Internet, both in conventional businesses and state-financed organizations. People say...

How to Trade Oil CFDs: A Comprehensive Guide

The oil and gas industry encompasses different types of oil, such as crude oil, no-lead gasoline, natural gas, and heating oils. Among these, crude oil remains...

Understanding Signal Providers and Forex Trading Signals

In the vast realm of forex trading, a 'signal' serves as a beacon, pointing traders towards potentially profitable trade opportunities. A signal provider is akin to a lighthouse keeper...

How to Trade in Forex? A Useful Guide

All currencies are typically exchanged in pairs when trading forex. A currency pair quotation is made up of two currencies. The Euro and the US dollar, for instance...

Trader: Profession of the 21st Century

Trading is the process of buying and selling various financial instruments. Therefore, a trader is an individual seeking to profit directly from the trading process...

Eight Expert Forex Trading Tips to Maximize Your Success

Forex trading is a thrilling but challenging endeavor. While it offers the potential for significant financial gains, the volatile nature of the markets can also lead to substantial losses...

Nixse: Deep Access to Global Markets

Trade over 1500 instruments on the NX Trader platform, choose from Currencies, Commodities, Stocks, Indices and Digital currencies with razor-thin fees and low commissions on all markets...

What Is the OTC Market?

Over-The-Counter markets are popular among investors and traders. This term is mostly associated with the trading of company shares. Yet, it's possible...

Best Online Forex Trading Tips for Beginners

As a forex trader you must have come across lots of information about trading forex. One of the biggest challenges is finding the right information for you...

A brief article on Investing in Silver CFDs

Gold and Silver are precious metals that has been known to man since the olden days. Investing in Silver and Gold also dates back to prehistoric times...

How to Calculate Forex Spread

In CFD Trading, the spread is the difference between the "bid" and "ask" price of an asset. In the Forex market, the spread is measured in PIPS. When trading...

Is Forex essentially gambling?

An issue for many new market entrants is the following: Is Forex essentially gambling? Each decision we make in our daily lives can be considered as a risk we take to succeed or progress in something...

Trading on Forex - A Primary Source of Income

There are a lot of discussions about trading within the boundlessness of the Internet, both in conventional businesses and state-financed organizations...

Forex swap: what it is, how it is calculated, and what are swap-free accounts in Octa

One of the most misunderstood terms in Forex trading is swap or Forex swap. To trade successfully, you should understand what Forex swap depends on and how it is calculated. This article describes what a Forex swap is, explains its mechanics, and describes swap-free trading accounts.

Trading Metals: A Comprehensive Guide for Beginner Traders

Metals trading, encompassing a spectrum from gold to nickel, offers unique opportunities in the financial market. For beginner traders, metals provide a stable, diverse, and intriguing avenue for investment and speculation...

Relative Strength Index (RSI): Unveiling Price Momentum and Overbought/Oversold Conditions

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. Developed by J. Welles Wilder, RSI ranges from 0 to 100...

10 Investment Tips For Buying Crypto in 2024

Even the slightest tip can tip the scales in your favor. As the cryptocurrency market evolves, making informed and strategic decisions is crucial for maximizing returns and minimizing risks.

How to buy cryptocurrencies for beginners?

To venture down the path of cryptocurrency trading, one needs a good understanding of what trading typically entails. We’ll be looking at both topics in this article...

Understanding Micro Lots and the Importance of Lot Sizes in Forex Trading

Grasping the concept of lot sizes in forex trading is essential for every trader stepping into the market. This article will delve into the details of what a lot is, the various lot sizes available...

What Is Stop Loss and Take Profit?

Stop-Loss is a pending order used by traders to minimize risks. When analyzing the market, traders may misinterpret the asset price movement and incur losses...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.