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Commodities are raw materials or primary agricultural products that can be bought and sold in the financial markets. They are typically used in the production of other goods and services and are traded on commodity exchanges around the world. Some examples include metals (gold, silver, and platinum), energy sources (coal, crude oil, and natural gas), agricultural products (white sugar, corn, and wheat), and livestock and animal products (cattle, eggs, and milk).

Commodity trading involves buying and selling physical commodities or commodity derivatives, such as commodity futures, options, and CFDs. The value of commodities is driven by supply and demand dynamics, which depend on various factors, including but not limited to weather conditions, geopolitical events, and the health of the global economy. When traders participate in commodity trading, they attempt to profit from these price movements by buying low and selling high, or vice versa.

The amount of money you will need to start commodity trading depends on the commodity broker and the type of account you open. At ADSS, we offer three live account types: Classic, Elite, and Pro. You can open a Classic account with a minimum deposit of 100 USD, and an Elite or Pro account with a minimum deposit of 100,000 USD. Each account tier comes with its own benefits, such as competitive spreads, leveraged trading, and dedicated customer support. To learn more, you can check out our account tiers.

Yes! At ADSS, you can open a demo account and speculate on price movements of commodities with simulated funds. Demo trading is popular amongst traders of all levels, as it offers a risk-free way for traders to get to know an unfamiliar platform or instrument, or test out new strategies.

Some popular instruments in the commodity market include gold, crude oil, and natural gas. Gold has been a highly valued precious metal for centuries and today is considered a safe investment in times of economic uncertainty. On the other hand, crude oil and natural gas are vital energy sources that are in constant and high demand globally for transportation and heating purposes. At ADSS, you can participate in online commodity trading with CFDs on metals, energy, and agricultural products.

Commodity prices fluctuate due to supply and demand dynamics, which offers traders a chance to potentially profit from these price movements. Commodity trading also offers traders and investors the benefits of diversification, which can potentially reduce their overall portfolio risk or enhance returns. Finally, producers and consumers can manage price risk when they trade commodity derivatives, such as through CFDs, or options and futures contracts. With derivatives, they can secure favourable prices of commodities for future production and operations.

CFD stands for Contract for Difference. A commodity CFD is a financial instrument that allows traders to speculate on commodity prices without having to physically own the asset itself. CFD traders can take both long and short positions on instruments, and they typically offer leverage. This gives traders the potential to profit from small price movements in the commodities market with a relatively small initial investment.