What is commodity trading?

Commodity trading consist of exchange of raw material or primary products, such oil or gold. Commodities can be traded from commodity brokers which are members on regulated commodities exchanges worldwide.

How are commodities traded?

You can trade commodities in standardized contracts, usually for £1000, £2000 up to £100 000 or even more. It’s possible to use leverage, up to 200 times the investment you have made.

Why should you trade commodities?

Some of the main advantages of commodity trading are:

  • Accessibility: 24 hour market from Monday to Friday evening.
  • High liquidity: You can sell within seconds.
  • No insider trading: The market can’t be cornered
  • Risk diversity: Perfect assets for risk diversification and as a hedge against decining stock markets.
  • Good opportunity to earn money. The commodity market often follow seasonal trends.