easyMarkets® allows trading in various commodities against the US Dollar.
Developments in commodities trading
Trading commodities is one of the oldest forms of exchange. Today, online trading enables access to these markets to millions of people and businesses worldwide with the click of a button. Commodities have become increasingly attractive to investors as global borders shrink. Commodities traders can now enter the market without having to take physical possession of the goods and have the potential to profit even if prices rise or fall.
Energy Commodities Trading
The energy commodities which can be traded on the easyMarkets® platform include a number of oil trading types: WTI Crude Oil, Brent Crude, Gas Oil and Heating Oil. These commodities are traded in open outcry or electronic markets and are usually traded for the purposes of speculation or hedging. They are now available to trade through our platform.
Commodities futures contracts are traded in commodities exchanges like the Chicago Mercantile Exchange etc. A futures contract is a contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. In your account you will be able to trade commodities as Day-Traded CFD’s keeping in mind that the deals are cash settled (there is no delivery of the product) and they must expire on a set date in the future. This date is based on the next futures delivery month on commodity exchanges.
Metal Commodities Trading
Metals are used in all industries from construction to the fabrication of machines, electronics and consumer goods. Metal commodities can be split into two types: precious metals and industrial metals. Precious metals traded on the easyMarkets platform include gold, silver, platinum and palladium. The unit of trade is the troy ounce.
Of the industrial metals, only copper is available to be traded at this stage. Industrial metals are traded in metric tonnes.
Agricultural Commodities Trading
The most popular commodities traded on national and international commodities exchanges is agricultural in nature. Agricultural commodities are those that have their origins on farms and plantations, and are either primary products, or products that have undergone minimal processing, such as freezing, cleaning or portioning into cuts. Some agricultural commodities can also be referred to as soft commodities: this refers to the fact that they are grown rather than mined.
At easyMarkets, the agricultural commodities available for trading purposes include wheat, corn, cotton, soybeans, coffee, sugar and cocoa.
For more information on commodities and other related trading products, go to our blog website, forex.info.