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Commodities

Advantages of trading Commodities

Rapidly increasing demands for a commodity can see significant increases in prices allowing for quick income opportunities. The diversity offered through commodity investments is stable way to manage your risks in a world where industries are constantly changing.

Liquidity

Enjoy competitive spreads, fast execution, zero comissions, deep liquidity and support wherever you are, whenever you want. We’re here to help 24/7!

Inflation protection

Commodities tend to go up when other economies experience inflation.

Trade Long & Short

Trade both longs and shorts depending on which way the market is going.

Easy to understand

Driven mostly by supply and demand, they tend to stay stable and relatively easy to understand

Diversified Assets

Standardised contracts for a broad selection of asset classes.

Hedge against event risk

Trading commodities will protect you against big events, such as wars and natural disasters, that could depreciate the value of an investment.

Ready for the thrill of the trade?

Trading Commodities with us!

Enter a thrilling market driven by suppliers, merchants and buyers who lock in prices on future deliveries. Trade gold, silver, oil, gas, cacao, coffee and much more. Click here for our competitive contracting details.

What are Commodities?

Commodities are commercial products that appear naturally in nature or are agriculturally cultivated, these products can be divided into two main types.

Hard Commodities –These commodities are extracted or mined, some common hard commodities are precious metals, like gold and silver, and crude oil.

Soft Commodities –These commodities are grown, usually products related to agriculture like cotton, coffee, corn and livestock.

What are some of the most popular commodities?

Brent Crude Oil

WTI Crude Oil

Gold

Copper

Silver

Natural Gas

Soybeans

What factors affect the price of the commodities?

Stock and Inventories

Some products can be affected by external factors which in turn will affect the stock and inventories. Weather, pandemics, staff issues, political or economic factors which can affect taxes, laws and government etc.

Geopolitical situations

Regions with a big uncertainty in the political situation can affect the commodities if they are produced in these regions.

Currency strength

If a commodity is strongly connected to a currency, a change in this currency can affect the price of the commodity. Monitoring these connections are important when trading commodities.

Nature

The nature affects the commodity prices greatly, especially the soft commodities as agricultural products are highly affected by weather. Favourable weather may result in a a greater supply of a commodity than expected, which makes the price drop. Cold weather can result in an increased demand for energy products, which in turn increases the prices.

Liquidity

When trading commodities one of the most important factors to consider is liquidity. A high liquidity means there is a high supply and demand, this is linked to what ease a trader can sell and buy the commodity he or she is trading. A more liquid market are usually considered to have less risk, as the chances that someone is willing to take the other position are higher. If a demand for a commodity goes up, so will the price and vice versa. Additionally, if there is a drop in the supply, the price will go up. If there is an increase in supply, the price will go down.

Economic Wealth & Inflation

The wealth of a country can also play a role in the price of a commodity. If a country is a major producer or buyer of a commodity, the wealth of the country can affect the price of the commodity as the purchasing power of the population is directly related to this.A commodity price usually changes in correspondence with inflation.

What factors affect the price of the commodities?

There are many ways to trade a commodity, with us you can trade a commodity as a CFD (hyperlink to CFD page), a contract for difference, which means that you speculate on the movement of the price of the commodity and have the possibility to trade either long or short depending on in what way you think the price movement will go.

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Access Direct Markets Ltd is Licensed and Regulated by the Financial Services Commission, Mauritius. Lic no. IQ15000020. The Chinese version of this website is for reference only. In the event of any difference between Chinese & English version of the Website, the English version shall prevail. HIGH RISK INVESTMENT NOTICE: Transactions in CFDs and FX, futures and leveraged foreign exchange carry a high degree of risk therefore should only be undertaken with risk capital. The amount of initial margin is small relative to the value of the CFD, futures contract or leveraged foreign exchange transaction. Hence, these transactions are highly leveraged. A small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you.