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Trading Commodities with Peak
Commodity trading involves valuable resources like metals and oil, which play a significant role in the global economy. Common commodities include gold, silver, and oil, which are among the most actively traded energy resources. When trading commodities in Peak Markets, you are not directly purchasing physical assets like gold bars or oil barrels. Instead, you trade the price fluctuations of the underlying assets through Contracts for Difference (CFDs). This unique approach allows you to capitalize on both upward and downward price movements, providing the opportunity for profit regardless of the market direction.
Types of commodities
Soft commodities
Soft commodities, also known as “softs” are natural products like coffee, cocoa, sugar, and cotton. Due to their importance for daily sustenance, the availability and scarcity of soft commodities create speculation opportunities for traders and investors.
Hard commodities
Natural resources, such as metals and oil reserves, are examples of hard commodities. They are the foundation of a country`s economic health, and global demand and they are tracked to predict an economy`s future stability.
More info about Commodities
Key Features of Trading Commodities
1
Commodities that are traded are typically classified into four main categories: metals, energy, livestock and meat, and agricultural products.
2
For investors, adding commodities to their portfolios can be a valuable strategy to diversify their investments beyond traditional securities.
3
Commodities are often seen as high-risk investments affected by unpredictable factors like weather, epidemics, and disasters, which influence supply and demand.
4
There are various investment avenues available for individuals looking to participate in the commodities market, including futures contracts, options, and exchange-traded funds (ETFs).
1
Commodities that are traded are typically classified into four main categories: metals, energy, livestock and meat, and agricultural products.
2
For investors, adding commodities to their portfolios can be a valuable strategy to diversify their investments beyond traditional securities.
3
Commodities are often seen as high-risk investments affected by unpredictable factors like weather, epidemics, and disasters, which influence supply and demand.
4
There are various investment avenues available for individuals looking to participate in the commodities market, including futures contracts, options, and exchange-traded funds (ETFs).
Opening the Position
You believe the price of USOIL will rise in the short term and decide to open long position 1 Standard Lot USOIL.
Buy 1 Standard Lot at 80.38 USD
Closing the Position
The price has risen 3% so you decide to take your profit:
Sell 1 Standard Lot at 82,79
Enjoy your Profit
Lot*Trade size*(Closing Price – Opening Price) = 1*1000*(82,79-80,38) = $2410
Why online trading?
Online trading allows you to reach out to global markets. Not only is it easily accessible, but also it is profitable on many occasions.
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