Commodities Trading
Trade CFDs on Commodities from around the world and explore endless trading opportunities
Trade CFDs on Commodities from around the world and explore endless trading opportunities
COFFEE
188.45 188.55
COPPER
405.85 406.05
COFFEE
188.45 188.55
SUGAR
22.48 22.52
SOYBEAN
1199.25 1200
Commodities are a popular investment method for many traders as it allows speculation on the value of a range of commodities, indices, and energies
* The pricing is for indicative purposes only. Please click on individual symbols to see trading conditions.
Dynamic leverage applies to MT5 and CTRADER. For more information, visit: leverage information
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We provide our clients with a wide range of desktop, web and mobile trading platforms including MetaTrader 5.
Commodity trading dates back centuries before stocks and bonds were exchanged. It was a very important project that connected different cultures and people. From early spices and silk to the exchanges that trade these assets today, commodities remain a popular investment vehicle. Investors looking to enter the commodity market can do so in a number of ways. Investors who want to invest in commodity markets can consider investing directly in physical commodities or indirectly by purchasing shares in commodity companies, mutual funds, or exchange-traded funds (ETFs).
Advantages of Commodities
One of the greatest advantages of investing in commodities is the fact that they tend to shield investors from the effects of inflation. In general, demand for commodities tends to be higher during periods of high inflation, which drives prices higher. It's also a good bet against the US dollar. Therefore, when the US dollar falls, commodity prices rise.
Risks of Commodities
One thing to keep in mind is that commodities tend to be much more volatile than other types of investments, especially funds that track a single commodity or economic sector. nvestors who trade futures should remember that it is speculation. A futures contract includes tracking of an underlying commodity or index. This can affect contract performance and make a negative (or positive) difference for investors. Futures also have their own risks that need to be managed independently of the underlying asset. You can invest in commodities in a variety of ways, such as buying physical commodities such as gold or buying ETFs that track specific commodity indices. You can also buy shares in resource companies such as oil and gas producers and precious metal prospectors. Commodities can be highly volatile, so make sure you understand the risks before making any investment.
You can also profit from commodities using futures contracts, which are contracts to buy or sell commodities at a specific price and date. If the underlying commodity prices are correct, you can make a lot of money in a futures contract, but you can also make a lot of losses. Make sure you understand the risks involved so that you can avoid, or at least recognize, the possibility of margin calls and other events that may affect your trading success.
Commodities FAQs
Here are our answers to your frequently asked questions about:
Crude Oil
Crude oil, also known as black gold, varies in composition depending on geographic location. Brent crude oil is an international benchmark and is traded on the Intercontinental Exchange ( ICE ) in London. The US benchmark West Texas Intermediate ( WTI ) is traded on the New York Mercantile Exchange ( NYMEX ).
Gasoline
Reformulated Blendstock for Oxygen Blending (RBOB) refined from crude oil is used as fuel for automobiles and other light commercial vehicles.
Natural Gas
A much cleaner hydrocarbon than crude oil, natural gas is one of the most important energy sources and could play an even more important role in the future. The natural gas market continues to expand and is used in power generation, transportation, fertilizer, hydrogen, animal feed, and various manufacturing processes.
Coal
The dirtiest of all hydrocarbons, some developing countries rely heavily on coal for power generation. Its secondary use is steel production.
Electricity
Electricity part of the backbone of the global economy and traded on commodity exchanges. The type of generation affects prices and the market is highly decentralized, localized and volatile.
Ethanol
Fermentation of sugars by yeast or petrochemical processes produces ethanol. Applications include gasoline blending, medical and chemical applications, or personal consumption. Ethanol is also present in commercial rocket propellants and fuel cells.
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RISK PROBABILITY: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64.99% of retail investor accounts lose money when trading CFDs with ALB Limited. These products may not be suitable for all investors. Please make sure that you fully understand the risks involved and seek independent advice if necessary. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The value of your investment may go down as well as up.
NEGATIVE BALANCE PROTECTION: Please see your rights here as a retail client.
