There are four general types of commodities within the financial markets:
- Energy: Crude oil, heating oil and natural gas
- Metals: Gold, silver and copper
- Agricultural: Corn, wheat and rice
- Softs: Cocoa, sugar, coffee
Open a commodities account with ADSS to start trading on the price movements of any of these common commodities. Many factors affect the price of commodities, such as unusual weather conditions for agricultural and softs, to political unrest and industry news for energy and metals especially.
Trade CFD on Commodities
At ADSS, commodities can be traded via a CFD. This provides the opportunity for traders to go long or short, trading for profit whether you expect the value of a commodity to rise or fall. Using the economic calendar and reviewing the latest industry and economic news can help you decide which way you think commodities such as crude oil or coffee will go.
Trading CFDs on commodities can provide a good way to start trading, help diversify an existing portfolio and provide a way to hedge investments. Commodities such as gold are popular safe haven options during times of high volatility in other markets, for example.