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Commodities
Trade the most popular global commodities on the award-winning MetaTrader 4 platform.
What are Commodities?
Commodities are naturally occurring products such as energy, metals, grains or even livestock. Commodity trading is one of the oldest forms of trading and in fact, before the invention of currencies in Mesopotamia almost 5,000 years ago, all trade was barter-based and by definition used commodities.
Commodities can be classed as either Hard or Soft with the term Hard Commodity used to describe goods which are mined (Gold for example) or the result of drilling (Crude Oil for example).
Market prices for commodities are largely defined by the supply and demand equation and geo-politcal developments.
Discover a new gold seam for example and the price of Gold would probably fall. A war in the Middle East would affect the supply of oil and the price would probably rise.
As a rule of thumb, the more there is of a commodity and the ease with which it can be extracted or cultivated, the lower the price. A bumper crop of Corn for example would depress the global price.
How to trade commodities
Trading commodities with TradeGM is the same as trading CFDs in our other asset classes. Trades can be Long (with the expectation of a rise in the price) or Short (with the expectation of a fall in the price).
While a trader on TradeGM can invest directly in Gold for example, by opening a CFD trade for the precious metal, there are other indirect ways to invest in commodities, such as futures trading, fund trading or even speculating shares in companies involved in the commodity itself (buying stocks in BP for example).
TradeGM offers Commodity trading on the award-winning MetaTrader 4 trading platform, combining ease-of-use with advanced trading features.
