The value of the commodities to a trader is that they have little connection with the ups and downs of currencies and the stock market, so are useful for creating a diverse and stable investment portfolio.
Modern investment offers a variety of easy ways to take part in commodities trading. The most common of these is by trading CFDs (contracts for difference). These let you take a position on a commodity’s price without actually owning the asset.
Commodities trading in gold has become very popular indeed, as online investment has grown, as it provides one of the simplest and most affordable means of making a profit.
Gold has great transferable value and historically has been proven to be extremely dependable for gold traders. Plus precious metals in general make an excellent bolster during periods where currencies are depressed and inflation is high.
At OctaFX you can trade CFDs across various commodities, both on the MT4 and MT5 platforms, with absolutely no commission:
|XAGUSD||Silver on Spot||16.62||16.66||3.9|
|XAUUSD||Gold on Spot||1,305.2||1,305.6||3.8|
|XAGUSD||Silver on Spot||16.63||16.65||2.2|
|XAUUSD||Gold on Spot||1,305.2||1,305.6||3.9|
|XBRUSD||Brent Crude Oil||79.2||79.3||0.9|
|XTIUSD||WTI crude oil||71.0||71.1||0.9|
Use charts to get an idea of how gold or other commodities behave across different timeframes. Back-test your strategies on historical data to see how they’d pan out. Look for patterns, wait for breakouts before trading, and trade with the trend. Get free Trading Signals to help you make your call, or use Free Autochartist market reports to get a clear view on the current trends in the most popular instruments. Technical analysis is important for making the right decisions.
CFD and Forex trading strategies vary in time and effort required, as well as the analysis and tools they are based on, and most importantly, the market situations they suit. Getting familiar with several strategies may prove beneficial for your trading.
There are many geopolitical and economic factors that will have an effect on the price of a commodity. Without question, the biggest factor influencing commodity prices is supply and demand in the market. Stay on top of market news and equip yourself with weekly and daily forecasts from our analysts to make informed decisions.
Protecting your account against adverse price fluctuations is an essential part of a trading strategy. Learn about the essential techniques of risk management.
and start trading commodities online