What is Commodity Trading?
The commodity market is one of the oldest financial markets. Traditional examples of commodities include oil, natural gas, gold and grains.
For investors, commodities can be way to diversify their portfolio beyond traditional securities.
CFD commodities allow investors to speculate on price movements of the commodities traded in the market - instead of actually owning them. So, thanks to CFD commodities, the market has become much more accessible to the average retail trader.
How to Trade Commodities?
Steps to start trading commodity CFDs
Three following steps explain how to open a trade:
Step 1: Select your market
Decide on what type of commodity you want to trade. With Limit Prime Securities, you can choose all popular commodities such as Oil or Gold.
Step 2: Set the volume of the trade and direction of your trade
Once you have decided on the type of commodity you want to trade, you need to decide how many units you want to purchase. If you think prices will rise in the near future, you can Buy a commodity or "go long". However, if you think prices will fall, you can Sell it or "go short".
Notice that you can control trading risk by using tools such as Stop Loss (Close at loss) and Stop Limit (Close at profit). When you start trading on our MetaTrader5 platform, the aforementioned tools will be clearer to you.
Step 3: Monitor your position
After a trade is placed, you should monitor its status and funds available in the account.
Check out the video example
List of CommoditiesRead More