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Commodities are basic goods or raw materials used for buying and selling purposes in commerce, and for supporting global trading markets.
They are usually the foundation for more complex goods and services.
Commodities are fungible – interchangeable with other goods of the same type, sharing price uniformity.
People trade commodities everywhere in the world, on many different exchanges, such as CME, ICE or Euronext. Here at CAPEX.com, we offer you a different way of investing in commodities: through CFDs.
By trading CFDs on commodities, you don't have to own any of these assets physically: you trade their price movements.
That’s why the commodities market is important for CFD traders: prices can shift dramatically from one direction to the other due to the sudden changes in the supply and demand. But, at the same time, volatility should be handled with care, since it can lead to increased losses.
In short, trading CFDs on commodities gives you access to:
The option to go short, as CFDs are flexible and you can trade both directions of the market (both rising and falling markets)
High liquidity volumes, because of the intense trading activities in the commodities market
Trading with leverage, which increases your buying power and lets you open positions with less capital, but also with increased risks. For monitoring your risks and keeping your investment under more control, you can use market orders such as stop loss or take profit.
With CAPEX.com, you can trade two main types of commodities on MT5 or CAPEX WebTrader desktop or mobile platforms: energies & metals (also known as hard commodities), and grains plus other diverse goods (known as soft commodities).
You can start your trading journey for CFDs on commodities with energies such as natural gas, crude oil, Brent oil or heating oil.
Many factors can impact commodity prices. Here are the most important ones:
Supply and demand
Whenever supply and demand balance out, the prices of commodities remain stable. But when the market anticipates or expects a supply issue (as a result of production cuts, natural disasters, major world events) or an increase in demand (as a result of population growth, expanding economy) prices might vary considerably.
Currency strength
The world's most traded commodities are directly linked to popular Forex pairs. For example, most commodities are priced in U.S dollars, so it's worth keeping a close eye on the Dollar Index. Also, the Canadian dollar has a strong bond with Oil prices, as Canada exports large quantities of black gold.
With so many variables influencing commodities and their pricing, it’s no wonder some of you might find it hard to keep track of everything. But here, at CAPEX.com we come to your aid!
Offering a tailored-made education academy, backed up by reputed third-party technical and fundamental resources, you can make more informed trading decisions regarding CFDs on commodities or other asset classes you might be interested in!
You can open a position of CFDs on Commodities with CAPEX.com through the device of your choice, be it a smartphone, PC, or tablet.
It’s straightforward:
Log in to your account or create account
Go to the Commodities section and choose your favorite instrument
Set your trade size
Choose direction (Buy or Sell) based on your assessment of the influencing factors
Place your trade!
You find it hard to keep a close eye on your trades all the time? Advanced tools are available, especially for this: you can set automatic orders like Take Profit and Stop Loss to manage multiple trades and keep your risks under control!
Ready to give us a try?
* Please note that CAPEX.com, operated by KW Investments Ltd, is not liable for any fees or hidden costs charged by your bank or online payment provider.
**For any withdrawable amount lower than 100USD/EUR/GBP or any other currency equivalent, charges/fees will be covered by the client. (Beneficiary will pay the costs – BEN)
Trading Times
Keep in mind that trading hours may vary based on the specifics of every instrument.
For more details, check our dedicated Trading Conditions.