Commodities Trading
Why Trade Commodities?
Commodities are ideal for trading via contracts for difference. You can trade CFDs on popular spot commodities such as crude oil, sugar or coffee with higher leverage. Here, traders can use less capital and gain greater exposure to the underlying instrument.
The required margin can be approximately 5–10% of the total value of the contract. This is much lower than the average margin of other asset classes.
Liquidity and No Inflation Influence
Deep liquidity and the absence of influence by high inflation make this asset class worthwhile for both beginners and professional traders.
Diversification
Trading CFDs on commodities is also a great way to diversify your portfolio and hedge against risks.
Popularity of Oil CFDs
One of the most popular commodity contracts is the Oil CFDs. Since oil is consider an indicator of global economic health, investors speculate on its price, as it usually goes up when the economy is growing.
24 Hour Trading
The majority of the commodity markets are open on almost a 24-hour basis, which are also the hours that CFDs are normally trading.
Low-Cost
CFDs on commodities offer a low-cost entry, meaning that more traders than previously possible can now trade commodities.
Tight Spreads and Low Commissions
Trade Commodities CFDs, and benefit from trading with tight spreads and the lowest commissions.
