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The global commodity market is full of opportunities. Nowadays, people can invest in commodities such as gold, oil or coffee online through CFD trading and can take advantage of any price movement – up or down.
In this article we will give you a short introduction to commodity CFD trading and explain how you can potentially benefit from this market, even if you only have a relatively small sum to invest.
What is commodity trading?
In simple terms, the commodity market is a financial market that deals with raw materials (also known as a primary economic sector). Investors can access around 50 major commodity markets, commonly divided into soft commodities (such as coffee or cocoa) and hard commodities (such as oil or gold).
How and where are commodities traded?
In the past, if you wanted to benefit from the price change of a specific commodity, you had to physically buy it.Nowadays though, you can invest in the price of different commodities in the form of CFDs.
Commodity CFD trading
When you trade different commodities in the form of CFDs (Contract For Difference), you invest in the price of a specific commodity without having to actually own it. Commodity CFD trading can be done online, from any standard computer or smartphone.
Leveraged commodity trading
At Financial Services, you have the opportunity to trade commodity CFDs with leverage – a unique tool that enables you to boost your trading power.