Commodity Trading

The commodity market exists for many centuries. Gold, silver, wheat and sugar have been traded across the globe by our ancestors, to be later joined by modern commodities including natural gas, oil and soy beans.

Information regarding commodities can be acquired through different means, from news to financial sites as well as diverse economic reports. The information is used to evaluate opportunities and risks. Allowing investors to make rather informed trading decisions.”

The variables that affect the commodity prices include:

·      Consumer preferences
·      Natural disasters
·      Changes in taxation
·      Consumer preferences
·      Geopolitical Events
·      Technological Advancements

Short Trading vs. Long Trading

Considering that the Financial Market is always fluctuating, it doesn’t matter if you contemplate that the price of a specific commodity is going to decrease or increase. When you trade commodities, you can benefit from every variation in price, up or down. You may select to ‘Buy’ (Long) if you anticipate the commodity in question will gain value or ‘Sell’ (Short) if you consider the commodity will reduce value”


Trading Commodities with Leverage

Leverage is one of the most common tools used by traders, it allows you to boost your buying power. In Trading360 we can teach you how to benefit from the use of leverage and manage risks while trading commodities.

For example:

With a $500 investment, you can open a position valued at $50,000 using a ratio leverage of 100:1.

Leverage permits you to open a position with a larger volume at a rather minor investment. It increases the risk of an investment so it should be used with high level of understanding.