Commodities are products that their price is a result of their worldwide supply and demand. Investors and Traders categorise commodities as another type of property assets such as Cash, Bonds, Real Estate Property, Stocks, Cryptocurrencies etc. They are considered as a great option to diversify an asset portfolio mainly because their price moves on the opposite of Stocks.
There are 3 main Commodities’ Categories, the metal commodities, the energy commodities and the agricultural commodities.
Most Known metal Commodities are Gold, Silver and Copper. These metals are considered to be assets and assets are suitable for short term and long term trading. Other metals are also considered as trading commodities (Aluminum, Nickel, Platinum etc) but their daily trading volume is limited.
Energy commodities are Oil (Crude Oil and Brent Oil), Gasoline & Natural Gas. In real life, Oil, gasoline and Natural Gas are fuels for our cars and engines, but here we examine them as trading instruments.
Agricultural commodities in real life conditions are food and drinks that we use them for our nutrition. Most important Trading Agricultural Commodities are Corn, Coffee, Cocoa, Cotton, Sugar etc
Famous Commodities Futures Exchanges
| Name | Founded | Comment | Website |
| CME Group Inc | 2006 | Its is a merge of Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX) and Commodity Exchange (COMEX). Derivatives and Futures Exchange | www.cmegroup.com |
| London Metals Exchange (LME) | 1877 | 14 underlying metals, Member of HKEX Group | www.lme.com |
| Intercontinental Exchange (ICE) | 2000 | www.theice.com |
How to Trade Commodities Online (Via CFD Trading)?
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In Plus500 you can trade Commodities such as Gold, Oil, Coffee with a low capital.
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Gold CFD Trading Plus500 (Leverage 1:20)
Gold is one of the most precious metals. Unlike other metals, it is soft, highly malleable, corrosion resistant, almost completely indestructible and non-toxic. It is estimated that, from the beginning of known human history until 2009, a total of 165,000 tons of gold were mined.
Global consumption of gold is about 50% in jewelry, 40% in investment reserves, and 10% in industrial applications. In terms of investment, gold, when basic investment shelters (stocks, bonds, cash) are not so safe, becomes attractive.
The price of gold tends to rise when there are fears of a global economic crisis. Investors who hold shares often invest in gold, just to diverfy their portfolio and manage the risks. The best investment in gold is the purchase of the metal itself, but this requires a high initial capital and storage costs.
Alternatively, you can invest in gold through futures, derivatives or trade CFD Gold in Plus 500 with 20:1 Leverage.
Oil Trading
