Commodities, whether they are related to food, energy, or metals, are an important part of everyday life. Anyone who drives a car can become significantly impacted by rising crude oil prices. The impact of a drought on the soybean supply may influence the composition of your next meal. Similarly, commodities can be an important way to diversify a portfolio beyond traditional securities—either for the long term or as a place to park cash during unusually volatile or bearish stock markets, as commodities traditionally move in opposition to stocks.
The commodity markets are rising in popularity due to their high volatility. OCL offers our clients a platform to trade with gold, oil, silver and other commodities.
Lower spreads
Enjoy some of the best commodity spreads on the market with no insurance costs, including on gold and oil
Increased transparency
As a continuous stream, your profit/loss will be clearer over the position's lifetime and with a daily funding charge for holding a position overnight, there's no need to close on expiry and open a new position
Continuous charting
Take advantage of technical analysis, available as long as you want, and backdated price charts for the last three to five years
Trading flexibility
Trade commodities within a wide range of asset classes
What to trade in Commodities Market?
Today, tradable commodities fall into the following four categories
Metals
Such as gold, silver, platinum, copper and so on
Livestock and meat
Lean hogs, pork bellies, live cattle, and feeder cattle.
Energy
Including crude oil, heating oil, natural gas, and gasoline
Agricultural
Including corn, soybeans, wheat, rice, cocoa, coffee, cotton, and suga
New to commodities trading?
Commodities are the basic building blocks of the global economy. They are natural resources traded on dedicated exchanges around the world. There are two types of commodities – soft and hard. Soft commodities are typically agricultural like wheat or sugar, whereas hard commodities are metals or energies like silver and gas.
The production and consumption of commodities depend on many factors, including supply and demand, the weather, economic and political events, the US dollar (commodities are normally priced in the US currency) ,and so on. As a result of all these factors, commodity prices can fluctuate significantly. See below workflow to know how to trade commodities:
1. Choose your market
Choose the commodity, such as Crude Oil Brent, Gold or Natural Gas, that you want to spread bet or trade CFDs on.
2. Decide to buy or sell
Buy (go long) if you think prices will rise, or sell (go short) if you think prices will go down.
3. Enter a trade size
Decide on the amount per point movement (spread betting) or how many units (CFDs) you want to trade.
4. Manage your risk
Select from a range of stop-loss orders including guaranteed stop-loss orders (GSLOs). They guarantee to close you out of a trade at the price you specify regardless of market volatility or gapping.
5. Monitor your position
After placing your trade, monitor your open positions to follow your real-time profit or loss.
6. Close your position
If your trade is not automatically closed out as a result of a stop or take profit order being triggered, close your trade when you are ready.
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