Commodity Trading
Trade metals and energy markets with tight spreads. Enjoy all the benefits of an dTrader broker when you trade commodities with CfdProai.
Open a commodity trading accountdTrader Commodity trading for the experts
Commodity trading dates back centuries, long before the advent of modern financial markets. It involves the exchange of various assets based on the price of physical commodities—typically metals and energy. The commodity market is known for its high risk and high reward, requiring a more specialised level of knowledge.
Advantages of commodity trading with dTrader
Trade commodities with leverage
Trade commodity CFDs with CfdProai using leverage of up to 1:100.
One platform with multiple instruments and markets
With CfdProai as your broker, you can use a single platform for commodity trading (metals and energy only) as well as indices, shares, forex, and cryptocurrency CFDs.
Trade commodities in confidence
At CfdProai, we are committed to upholding the highest standards for all our clients.
Access automated commodity trading
You can choose to download and use ready-made scripts and expert advisors or create a custom indicator or script tailored to your unique commodity trading strategy.
Access anytime, anywhere
Available via the desktop, web-based, or mobile version of the CfdProai suite of trading platforms.
A wide range of analysis
Over 50 built-in indicators and graphic tools for technical analysis, a quotes history center, a strategy tester, and news—all designed to enhance your commodity trading knowledge.
The different methods of commodity trading
Most commodity traders operate via a futures exchange, where agreements are made to buy or sell an asset at a predetermined price on a specified future date. When the futures contract expires, the buyer is obligated to pay the agreed-upon commodity price.
If, during the intervening period, the value of the asset rises above the agreed price, the buyer stands to make a profit. Conversely, if the market price falls below that benchmark, they will incur a loss.
An alternative for traders is to purchase stocks in businesses associated with these commodities, such as mining companies or oil refineries. This approach means commodity traders are not only taking a risk on the value of the specific commodity but also on the performance of the company itself.
Of course, commodity prices can influence a company’s share price, but they are not the sole contributing factor. Businesses can still generate profits even if the commodity itself experiences a drop in value.
What are the most traded commodities?
The commodity market is typically divided into four main categories: metals and energies, both of which you can trade with CfdProai, as well as livestock and agriculture.
Metals including gold, silver, copper, or platinum
Precious metals such as gold often hold inherent value, making them an appealing choice for commodity traders.
Agricultural products such as corn, sugar, and wheat
These commodities formed the backbone of the first markets in the 1800s, when farmers would lock in prices for their produce at various times of the year.
Energy sources such as crude oil and natural gas
This commodity market is influenced by various factors, including production rates and advancements in renewable energy sources.
Livestock including cows, pigs, and sheep
This commodity is influenced by factors such as economic inflation and its impact on food prices, weather conditions, the spread of disease, and societal attitudes towards meat consumption.
The risks and rewards of the commodity market
As with all types of trading, there are no guarantees when it comes to commodities. It’s crucial for traders to understand and consider both the risks and rewards before entering the commodity market. They should ensure they’ve conducted thorough research and analysis prior to taking any positions.
The commodity market is particularly high risk and high reward, perhaps even more so than many other markets. While commodity traders can take steps to mitigate these risks, the market demands a significant level of specialised knowledge to navigate successfully.
Register for an account with CfdProai and gain access to our cutting-edge CFD trading platform.
Trade multiple instruments—forex, indices, shares, commodities, and cryptocurrency—all from a single account.
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How to open a commodity trading account
Select your country of residence
Choose your country of residence to get started.
Complete the online application
You will then be redirected to our secure server to complete the online application.
Login and start trading
After completing the application, you will receive a username and password. Log in to the Client Portal, deposit funds, and start trading.
Open a commodity trading account
What factors affect commodity prices?
Commodity trading is often considered higher risk because the market can be influenced by factors beyond traders’ control. For example, major political events such as the US elections have historically impacted the prices of precious metals—especially gold. As a result, this is one commodity market that traders closely monitor during election campaigns.
What is a commodity broker?
How to define success for a commodity trader
Setting objectives will provide a framework for your trading strategy and help you manage expectations as you progress. Remember, commodity trading is high risk and high reward, so it’s crucial to be prepared for potential losses and have a plan in place to recover from them. Even the most experienced commodity traders don’t get it right every time, but having faith in your research and a clear definition of success will keep you on track.