What are commodities and how can we trade in it?

Commodities with brokers

Commodities are other trade able things that available with meta trader of several brokers. Not all brokers offer all the commodities, but some offer all possible commodities depends upon the country of broker. Commodities are just like metals, crops, raw material and drinks. This kind of commodities includes Gold, Silver, Platinum, Palladium etc in metals. If we see in crops then rice, wheat, coffee etc are include in crop commodities. In raw material, edible things like sugar, cooking oil, coconut oil etc. If we see drinks then orange juice, lemonade etc. These are the things that are include in commodities.

commodities

Some brokers offer all these things and some brokers don’t. This is because most of the brokers focus on foreign exchange (forex trading). This is because it is open for 24 hours a day. There are some sessions that let the market live all the day, while commodity market has a limited time of trading. According to the country of trading. There is a big difference between forex and commodity trading. That’s why brokers don’t offer commodities. In commodities, we may see high spread between buying and selling. Sometimes there isn’t spread line because there is only one option in the chart.

High volatile Commodity

The most traded and volatile commodity is Oil. This is a thing that make big money and some brokers offer a little bit high leverage on it. In the past two to three years, the price of oil reduced due to decrease demand worldwide. Oil is widely used in vehicles and due to electric cars, bio diesel and similar technology, the demand of fossil fuel reduced. That’s why the price dropped.

 

The second most traded commodity is Gold and then silver. These are also high volatile, but some brokers offer high leverage with this commodity. This is because they count it in forex trading, however this is commodity. The short code for Gold is XAU and silver is XAG, These pairs are avialable with some major currencies, like USD, EUR and GBP. Not all brokers offer these three pairs, but most of brokers offer.

 

commoditiesGold spread may be less because of its volatility. It is highly recommended to trade in demo accounts before go live trading. It is high volatile market and readers will understand its volatility without any loss of money. Demo accounts are actually for the sake of practices and to gain the knowledge of market.

 

Where to find these commodities?

You can find these in the currency charts below all the currencies. Because the first priority of brokers is forex pairs. You will require to use your Metatrader and in meta trader, scroll down the currency pairs. You can also do robot trading in gold and silver. There are several expert advisors available to trade in gold and silver market. You can use several strategies in gold market. The most common and most used strategy is scalping in gold that the author personally used in his trading. We have already discussed this thing in our earlier articles. If you haven’t yet read them, please read them first to understand these things.

If you can understand the meta traders then you will be able to start trading. There are two versions of metatraders avialable, but the most used is metatrader 4, please read its review here.  Not only with classic trading, but traders can also trade in commodities with binary options. This is less risky but less profitable. People usually prefer binary options because of less risk. Some binary brokers offer up to 80% of returns if the market moves according to your prediction.

 

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