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There are many commodity brokerage firms that can provide you a platform where you can create your trading account.
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There are numerous commodities which are traded on the open markets and through Forex brokers as well as retail brokerage firms. • Commodities are raw materials which are extracted from the Earth. • There are numerous examples of commodities products which are; crude oil, coffee, metals, agriculture, wheat, soybeans, corn, copper and cotton.
The most widely traded commodities are metals. • This group of commodities consists of items such as; gold, silver, platinum and copper. • Metal commodities are traded on exchanges such as the London Metal Exchange, COMEX & NYMEX. • Prices of commodities tend to be cyclical.
Over the last 10 years, many investors have taken advantage and the benefits of investing in commodities as a strategy to diversify their portfolios. If you wish to buy commodities, here are some simple steps to get started with: Create a Trading Account There are many commodity brokerage firms that can provide you a platform where you can create your trading account.
Purchasing Commodities via Online Broker You should purchase commodities through an online broker. These are a type of agreements that works on the rule that seller will deliver the said commodity to the buyer by a particular date.
Purchasing Commodities via ETFs Purchasing Commodities is not like you purchase items from the market. You have to buy shares of Exchange traded funds (ETFs) in order to buy commodities Purchasing Commodities via Mutual Funds Another way to purchase commodities is through Mutual Funds. They have portfolios that are more diversified than ETFs.
Note: Commodities markets can be very volatile and active traders that are looking to make money in this market they should keep a close eye on commodities prices as well as news and events around the world.