A commodity is a raw material, like natural resources or agricultural products that are used in commerce.
Some of the larger commodities includes coffee, copper and sugar which are amongst the most commonly traded. Oil and Gold are still massive movers in the market, and their values often changes the value of even the USD!
Benefits of trading commodities with Ubuntu Invest
Ubuntu Invest offers a large collection of the world’s best commodities to trade all under one roof. The same platforms you use for indices and forex will also offer you commodity trading. With our top tier servers, leverage, fast execution time and flexible platforms you will have everything you need to trade commodities!
You can trade commodities with leverage! You can even short positions with leverage! Take full advantage of volatile markets!
Advantages of trading commodities
Professional traders who are looking to diversify their trading portfolio should consider commodities. Not only does it give you more trading opportunities, but it can also help your forex trades. Major shifts in certain commodities like gold and oil can give hints to future direction changes in major currencies like the USD.
Major influences on the commodity market
Here are just a few examples of what can effect the commodity market. For those of you who are wanting to trade professionally, or already do, you are probably watching news events already. These sorts of events can give you more trading opportunities on top of your forex and index trading!
Natural disasters: Extreme weather and other unpredictable natural disasters can seriously effect on commodities (as well as currencies). When the Western Cape in South Africa had a serious drought, it reduced the agricultural production. As a result we saw a spike in the value of many products such as wheat and grain. You can profit from these events.
Political Events: Especially international diplomacy! President Donald Trumps ban on Huawei products resulted in a $12 billion drop in revenue and a loss of Google Apps availability on these phones. Terrible for Huawei, but amazing for traders who shorted that position!
There are many more things that can effect the commodity market, these are just two things that you can look out for to make some more trades!