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Commodities Trading
The commodity market is almost as commonly used as the stock market. Usually, one can notice a substantial flux in commodities and their prices due to micro and macro-economic factors.
For example- Agro-commodities and their prices are conditional to climatic conditions. Whereas metals waver based on their demand and supply ratio. The current annual turnover of the commodity market is around $21.71 Billion.
How does the commodity market work?
Commodity Market is a blend of spot and futures trading with future options, forward and spot prices. Subsequently, the prices of the various commodities are set. Simply put, the price is calculated according to the speculators’ mindset along with the demand/supply.
Physical commodities are purchased in cash or spot and sold at a negotiable price.
Commodities are categorized into hard and soft commodities, and some of the significant hard commodities are oil and gold, while the soft ones are wheat, coffee, cocoa, and sugar.
The commodities market and its exchanges occur according to international associations’ regulations, which proves to be advantageous for both buyers and sellers. Additionally, the commodity market is simpler to understand for beginners.
Range of Commodities
With XFlow Markets, you can trade in diverse commodities like metals/energy products/agricultural commodities.
Here is some essential information about these commodities:-
Metals: Metals are an excellent investment in the commodities market as they provide good returns. The two types amongst metals are precious metals and industrial metals.
Agricultural Products: Agro commodities are one of the most pivotal pillars of humankind and its existence. Since the agriculture sector encompasses more than 36% of the world’s workers, most of the world is reliant. XFlow Markets clients can trade in the bulk of commodities like cocoa, soybean, cotton, sugar, corn, and wheat.
- GOLD
- SILVER
- PLATINUM
- COPPER
- ZINC
- NICKEL
- ALUMINIUM
- COFFEE
- COCOA
- WHEAT
- CORN
- SOYBEAN
- COTTON
- SUGAR
- NATURAL GAS
- OIL WTI
- OILs
Why Trade Commodities?
Trading in commodities has minimal transaction values, trading time, and minor margins, compared to forex markets. The profit depends entirely upon your trading skill, systematic market evaluation, and appropriately placing a trade. Some commodities show little movement, while others are highly volatile. You can choose how and when to execute a trade according to its bullish/bearish trends.
Benefits of Commodity Trading
Safe heaven instrument
Many precious metals like platinum, silver, and gold, generally safeguard your position from inflation and an uncertain economy. While you invest in other volatile instruments, the part of your funds you have invested in these commodities can act as your safety net.
Diversified Portfolios
You can diversify their portfolio by investing in commodities as this market functions differently compared to the stock or currency market. In uncertain conditions like the stock market crashing, you will sustain a part of your investment.
Transparency
The commodity market is remarkably transparent, especially with the future market due to the viable, fair price and active participation of the traders and investors. If you research thoroughly and invest wisely, your trades made in this market can fetch astonishing returns.
Profitable Returns
Risk-taking enables profit-making. This motto can help traders to capitalize on this price volatility. But the large-cap companies either shoot up or collapse down with heavy losses.
Hedging
Hedging proves to be an excellent strategy for protection over inflation and other extreme movements in the market. The price of commodities can rise due to inflation when investors sell their bonds and stocks, and hedging can help minimize the loss.
Global Exposure
The international market gives you an opportunity to trade in commodities which may not be available in your country or area. Now traders are not restricted to commodities in and around their location. They can invest in all commodities which are mined from any other part of the world.
Managing the risk
The commodities market can also be quite volatile, according to global events. Therefore, the exchange is the middle ground for safeguarding counterparty risks to investors.
Why trade commodities with XFlow Markets?
While many brokers worldwide offer a platform for commodities trading, here are some of the perks you will have when you trade with XFlow Markets.
- Your Choice of Spreads
- Deep Liquidity
- No Requotes
- No Charges With Guaranteed Stop Loss
- Unlimited Number of Trades
- 30+ Products, Across 6 Sectors.
Commodities Trading FAQs
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Why invest in commodities?
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Who regulates the commodities market?
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What is the difference between a long and short position in the market?
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What is Hedging and Speculation?
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Range of Markets
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Trading Platforms
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Market Analysis
XFlow Markets provides an entirely transparent access to the FOREX Market through two powerful trading platforms with excellent execution speed, a 24/5 client support system with no dealing desk involvement.
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© 2024 XFlow Markets, All rights reserved.
Risk Warning: Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances.
You may lose more than you invest. Information on this website is general in nature. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries additional risks.
XFlow Markets INC is incorporated in Saint Lucia with registration no. 2023/C088 governed by the Companies Act, Cap 13.01 of the revised laws of Saint Lucia.
XFlow Markets does not offer Contracts for Difference to residents of certain jurisdictions including the Belgium, Iran, Canada, North Korea, the USA, Cuba, Syria and FATF Black Listed Countries.
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