Trade world’s famous
commodities with ease
Trader.Online provides a flexible and easy way to gain some exposure to some of the world’s most popular commodities
from within your trading platform. Learn more about what are commodities and we have to offer.
What is a commodity?
Commodity trading is quite similar to stock trading. The only difference is the asset traded. The focus in commodity trading is on assets like gold rather than company shares.
Traders benefit from the fluctuation of market prices. At Trader.Online, traders can trade on assets like gold, silver, brent, crude oil.
The prices of these commodities are primarily based on their demand and supply. Traditionally, large businesses have been the main participants in the commodities market. However, there are many individuals investors who now have access to this market via the internet.
Why trade commodities?
Low start up costs
As any assets traded online, only an internet and a computer is required to enter the commodity market and start trading.
A small deposit (margin) allows you to control the full contract value. For example, a deposit of $2,700 (depends on your broker) allows you to buy or sell one Platinum contract consisting of 50 troy ounces of Platinum.
Price movement in the commodity market is studied through technical analysis. This forecasting method rely mostly on the analysis of past data to predict future trends.
What factors influence commodities?
Weather can have a great impact on the market since for commodities such as coffee, heavy rainfall might destroy coffee farm harvest and therefore causes price of coffee to increase due to lack in supply.
Political instability can also influence certain commodities. Iraq is among the major oil producers in the world. Increase political tensions in Iraq can therefore cause price of oil to fluctuate.
Demand & Supply
Demand and supply plays a fundamental role in trading. Let’s take an example where demand and supply was always equal. Price of commodities would stay the same. However, in real life demand and supply is never the same which results in frequent fluctuations in the price of commodities.
What are the most popular commodities to trade?
Due to the global demand and the rate at which energy is consumed, it’s not a surprise that crude oil is the most popular commodity. Also demand for such commodities will always exist.
Falling a little bit short behind crude oil we have coffee. Over 2.25 billion cups of coffee is consumed worldwide on a day to day basis which is why demand for coffee in the commodity market is so high.
Despite efforts to move towards renewable sources, natural gas is still widely used as a source of energy and fuel. This is why natural gas is among one of the most traded commodity on the market.