What is Commodities Trading?
Commodities markets offer you the opportunity to benefit from changes in the supply and demand of traded goods worldwide, while merchants lock and protect their prices on future deliveries. Popular commodity groups include metals (gold, silver, copper, platinum, palladium), energy (crude oil, brent oil, natural gas), grains (corn, wheat) and other soft commodities (sugar, cocoa, coffee).
They offer great investment opportunities, due to their steadily high demand, allowing for portfolio risk management and diversification, especially during periods of inflation or economic instability.
*Soft Commodities and grains are excluded from M4Markets' range of products offered
How does Commodities Trading work?
When trading CFDs on commodities, you do not own the underlying asset of the CFD that you are buying. As an investor, you must speculate how the exciting market of commodities will react to a variety of factors that affect our everyday lives.
To speculate on commodity price movement, you need to take into consideration factors like the weather, trade disputes, wars, geopolitical changes and all the environmental changes that can affect the commodity prices and cause market volatility.
Taking into consideration the above factors, you can speculate whether the price of the commodity you want to trade will rise or fall. You can then go long/buy or go short/sell with the expectation to make profits. Some of the most popular traded commodities include Crude oil, Gold, Brent oil, Silver, Natural Gas, Corn, Soybeans and Coffee.