Commodities Trading

Commodities such as oil, gold, and silver have been traded globally for centuries. At iFOREX, we offer a wide range of commodities that can be traded through CFDs (Contracts for Difference), all from a single trading account. With leverage available (where local regulations allow), you can take advantage of market fluctuations and diversify your portfolio by trading commodities alongside forex, indices, and stock pairs.

What Are CFD Commodities?

Commodities include a variety of consumable goods traded on global markets. These can range from metals used in jewelry, construction, and medicine to agricultural products that are integral to diets worldwide. Additionally, commodities include natural resources like oil, which is often influenced by organizations such as OPEC+.

CFDs allow you to trade commodities without the need to physically own them. You can speculate on whether the price will rise (buy) or fall (sell) instead. The price movement of these commodities is mirrored in the CFD, reflecting real-time changes and delivering corresponding gains or losses.

Commodity Exchange Rates

Here are some of the most popular commodities available for trading at iFOREX:

Rates are based on the sell price of the commodity. To see the full list of tradable commodities, click here.

Commodity Trading via CFDs

Contracts for Difference (CFDs) allow individual investors to trade a range of financial products such as indices and commodities without the need to actually own them. CFDs reflect the price movements of popular traded products, which are typically in futures contracts, and allow individual investors to use common trading tools, such as technical analysis, fundamental analysis, and well-known strategies to take advantage of potential market trends.

CFDs have become a popular form of investment among individual investors because they allow for leverage. This maximizes your buying power up to 400 times, with the risk limited to your initial investment.

Key Features of Commodity Trading

• Trade Without Ownership: Access a variety of global commodities without physically purchasing them.
• Leverage: Maximize your trading power with leverage of up to 400:1 (where local regulations permit).
• Competitive Margins: Open CFD trades with tight spreads to reduce the overall cost of your trades.

Why Trade Commodities?

Commodities are an excellent way to balance your portfolio, especially when currency pairs experience high volatility. For experienced traders, metals and other commodities are often favored during periods of inflation or economic downturns. These assets can be a hedge against broader market instability, making them particularly attractive when global economies face challenges.

Additionally, commodity prices are driven by consumption and production on an international scale. For example, oil prices are constantly in the news, providing clear opportunities to follow market trends. Staying informed about global production and consumption data is crucial for anticipating price movements, and the iFOREX economic calendar is a great tool for keeping track of important news and events.

Summary

Commodity trading through CFDs is a powerful tool for diversifying your portfolio and managing risk. With access to popular commodities like gold, oil, and silver, you can leverage market trends to maximize potential profits. However, it's essential to stay updated on economic events that affect commodity prices and to use risk management tools effectively.

Furthermore, consumption for personal on an international scale can affect prices. For instance, oil is always on the news, making it easier to follow when check the news about oil production and consumption. It is wise to stay updated on the iFOREX economic calendar and other sources to be able to forecast commodity consumption, and in turn, how their values while change.

To learn more on trading in commodities, go on the iFOREX commodities page.