A commodity market is a market that trades in non-manufactured goods.
There are two types of commodities: soft and hard. Soft commodities include agricultural products like wheat, coffee, cocoa, fruit, sugar. Hard commodities include mined resources such as metals. Commodities are traded on commodity exchanges, for instance the London Metal Exchange. On these exchanges standard agreements are concluded, so that the goods can be traded without visual inspection.
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With a contract for difference you can profit from the price going down by placing a “short” (“sell”) trade. If you take a short position, you will receive daily interest.
Trading commodities with CFDs (Contracts for Difference) allows you to trade the price of the commodities without ever owning them. You will always get a cash settlement and there is no risk that a truck of cattle will be delivered to your doorstep.
You only deposit a small percentage of the overall value of the trade, and the rest will be supplied by your broker. Most commodity CFDs reflect the futures markets, but trade in smaller units, so that it’s much easier to manage risk for an average investor.
To start trading Commodities with TeleCapital you’ll need to open a Live Account. Once registered, you can apply for margin trading. If you have never traded before, we suggest you learn the basics first by opening a Demo Account.
In order to set up your account, click the “Create Account” button. To open an account, simply fill-in the registration form.