What are commodities?
Trading commodities has been present for quite a long time, in the market’s history. Generally commodities have always been in the spotlight, therefore are considered a good way to start trading. In MirixPro you can take positions, short or long on the values of CDF contracts for the following commodities: Gold, Silver and Oil.
Gold and Silver
Trading precious metals has always been very stimulating for investors due to numerous extreme price movements. Gold and silver are greatly traded nowadays and are considered to be “safe” investments, as their value has experienced significant fluctuations triggered by political and market changes, together with the extent of stock and demand for these metals.
Gold prices are not primarily dependent on production and consumption levels, like most commodities, as they trail the rhythm of political changes worldwide. Due to this, gold is more possible to operate as a hedge in contrast to other markets in times of insecurity. In conjunction with gold, silver is distinctive to its extensive use in various industries, as it has a more dynamic price than other metals.
What is more, Gold and Silver are considered to be asset classes, and a great number of investors view them as stores of value in times of economic uncertainty, expecting that their price is more likely to endure economic declines or crises, more than any other asset class.
Gold and Silver besides being purchased and physically owned, can also be a good and simple temporary investment, as traders can take position on the price movements of these precious metals making a less capital-intensive investment.
Trading Energies – Oil Trading
Energy prices are very unstable due to several political and environmental factors, which influence their value. In addition the demand for these energies plays an important role, as it has an effect on their prices. During times of financial prosperity the need for energies increases and vice versa.
Apart from financial changes, radical weather conditions may also have an impact on energies as difficulties in the supplies may occur. Consequently, such circumstances carry the ability to reduce or rise the demand of buyers associated to these energies.
Currently running in a round-the-clock market with its prizes to constantly fluctuating, Oil trading has expanded worldwide, becoming an ideal instrument for brokers who seek for fast actions.
Why trade commodities?
– Trading commodities can be ideal for unexperienced traders as the deposits are low.
– There are no commissions
– Capacity to go short and benefit from reducing prices.
– Immediate exposure to global markets.
– Profitable trading as you trade on a commodity instead of buying it.