Commodities are the basic items of consumption in the global economy. If you have an opinion on let’s say silver gold, coffee, or anything else you should act on it by participating in commodity trading. Most commodities are traded all around the globe on different exchanges. This is done on the basis of futures contracts (FCs). An FC is an agreement that allows all parties of the agreement to try and trade at a particular set price as well as on a set date.
Such contracts are based on the price of any specific asset, but they do not grant any ownership of the actual physical commodity itself. From a speculative trade point of view, this is great because you don’t really have to actually own an asset, but you can, however, trade them as and when you want.
There are two main types of commodities that are traded in the market:
This refers to those items that have to be mined from the surface of the earth. These can include gold, silver, platinum, and other precious metals. Apart from that, diamonds, rubies oil and other energy products are also classified as hard commodities.
Soft commodities are those products that are grown rather than mined. Some of the more common agricultural products such as coffee sugar, wheat, corn and other items of similar but indispensable nature are known as soft commodities. These products are grown by famers and are very sensitive to climate and weather changes. Apart from that, they have highly cyclical price patterns due to the fact that their crops are seasonal in nature. This makes trading in their future prices somewhat easier than most other products.
There are various reasons due to which you should consider investing in commodities trading with TiMarkets.
You can enjoy some of the best commodity spreads currently available on the market including gold and silver bullion as well as oil and other commonly consumed commodities.
If you invest in the form of a continuous stream, you will gain an insight on the total profitability of your portfolio. You won’t have to close on expiry and proceed to open a new position every day.
You can utilize the technical analysis by the leading experts in the industry to make your play. You can also check for backdated price charts spread over the last few years. This will give you a great idea as to what to expect in the future.
It is now possible to trade both hard or soft commodities on these highly advanced platforms.
Trading in the commodity market can also protect you against galloping inflation. Whenever the national economy goes through an inflationary trend, the prices of both hard and soft commodities tend to go up as well.
All of the above reasons combine to ensure that you will be able to make a windfall when you start trading in commodities.
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