businessman with financial symbols coming from hand

Investing in commodities

Investing in commodities is a more complex type of investment trading. A commodity can either be grown or naturally produced in the environment. They can include oil, gas, metals, and agriculture.

Investing in commodities is similar to stock trading. Instead of trading a company’s shares, investors obtain basic goods which they can then trade. Commodities are traded on exchanges where traders work to turn profits based on the price fluctuation of the commodity.

Both international and national marketplaces cater to commodity trading. The most popular international categories for commodity trading include energy, agricultural, and metals. The value of these commodities is based on supply and demand.

Investing in commodities is not just for large businesses anymore. With the advent of online brokers, individual traders are also able to try their hand in the commodities market.

The value of all is commodities is based on supply and demand and there are two main types of commodity trading:

Futures
Trades can be conducted in the futures market where the trade occurs once the commodity reaches a certain price.
Options

Commodities traded based on a certain date and price is referred to as commodity options trading.

what you need to know

Benefits of trading Commodities

Like any investment, commodities come with risk but it also helps diversify your portfolio beyond commonly used financial securities. How an investor engages in commodity trading all depends on their risk appetite and asset allocation.

With commodities traditionally moving against stock values, using commodity trading as a way to store cash during high volatile and bearish markets is one way investors use the commodity market. Other benefits derived from commodity trading include:

Our direct and reliable pricing charts allow traders to optimize their trading potential in order to capitalize on informative and results-driven trades for every investor.

Don’t limit your trading Reach into new markets, speculate future commodities and hedge against inflation.

Clear and competitive pricing with no complicated formulas lets investors know the critical details of every trade.

Our trading platform is built for serious traders who demand sophisticated trading features and analytic tools in one powerful package.