Trading of commodities, hard or soft, goes back hundreds of years. In the years before the invention of money as a medium of exchange, people used to exchange livestock, grain, but also other raw materials, agricultural or mining products. From the Golden Buddha statues and the golden Statue of Zeus to the Taj Mahal, humanity has always used precious metals as status symbols. In times of economic uncertainty, investors always return to the refuge of gold. Or silver.
Platinum, palladium or copper are metals included in commodities as well. There are also energy commodities, like NGAS and oil.
Some traders like commodities because it is a physical market they can relate to. What about you? Can you relate to commodities? Get a load of our beginner’s guide to help you get started.
Whether you’re looking to conquer the commodities markets or you simply want to learn more to earn more, you’ve come to the right place. Trading at your desk or on-the-go, you also have exclusive access to our vibrant trading community! Open an account today or try our risk-free demo account.
Sometimes, the markets might experience some turmoil, but that’s okay! You can just keep calm and continue trading.
HAVE A PLAN
Like with any other trading asset, a trader must develop a trading plan and strategy before getting started.
KNOW WHAT YOU’RE DEALING WITH
Commodities are either natural resources (such as oil, gold and silver) or agricultural products (like cocoa or coffee) which are traded as products in the real economy as well. Investors buy and sell commodities through futures contracts. Bear in mind that the commodities market is very volatile, as a lot of different factors can affect their prices. Usually, investors who want to diversify their portfolio choose commodities.
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what you’re made of.