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One way of investing in commodities is spot trading. This is the type of commodities trading in which you can do trading within a few business days.
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Commodities are raw materials which are extracted from the Earth. There are numerous commodities which are traded through retail brokerage as well as forex brokers firms. • There are numerous examples of commodities products which are crude oil, coffee, metals, agriculture, soybeans, corn, copper and cotton. Commodities prices tend to be cyclical. • Over the last 15 years, many investors have taken advantage and the benefits of investing in commodities as a strategy to diversify their portfolios.
Commodities markets can be very volatile and active traders that are looking to make money in this market should keep a close eye on commodities prices as well as news and events around the world. • One of the most abundant metals traded is gold. Just like any commodity, gold is subject to the laws of supply and demand. At the time of the financial crisis, investors and traders believed that gold would continue to rise.
How do they work? • One way of investing in commodities is spot trading. • This is the type of commodities trading in which you can do trading within a few business days. There are two types of commodities, i.e. Future and option For future commodities, the trader has to place a minimum deposit with his broker. The value of commodities can keep on changing over time.
Options commodities An options investment can let you buy a mini option contract, which is a fraction of the actual contract. • There are various other type of commodities you can invest in include index funds, unit trusts, and commodity stock.