The traditional way to trade commodities is by using futures contracts. However, this is not always the best way to trade commodities. For one thing, many traders don’t have a futures trading account. And trading futures requires a fairly large upfront investment. Plus futures involve leverage, and while this can inflate gains, it can also magnify losses. All of these issues can be avoided by using CFDs to trade commodities. Liquidity is never an issue with CFDs, you can get started with a few hundred dollars, and you control the leverage, or lack of leverage when trading CFDs.
Why trade commodities CFDs with PFH Markets?
Advanced AI technology at its core:
A Facebook-like news feed provides users with personalized and unique content depending on their preferences. If a trader makes decisions based on biases, the innovative News Feed offers a range of materials to put him or her back on the right track. The neural network analyses in-app behavior and recommends videos and articles to help polish your investment strategy. This will help you to refine your approach when you trade commodities.
Trading on margin:
Thanks to margin trading, CFD brokers provide you with the opportunity to trade commodity CFDs and other top-traded commodities, even with a limited amount of funds in your account.
Trading the difference:
By trading commodity CFDs, you don’t buy the underlying asset itself. You only speculate on the rise or fall of the particular commodity. CFD trading is no different from traditional trading in terms of its associated strategies. A CFD trader can go short or long, set stop and limit losses, and apply trading scenarios that align with his or her objectives.
All-round trading analysis:
The browser-based platform allows traders to shape their own market analysis and make forecasts with sleek technical indicators. Brokers provide live market updates and various chart formats, available on desktop, iOS, and Android.
Focus on safety:
CFD Brokers puts a special emphasis on safety. Licensed by the FCA and CySEC, it complies with all regulations and ensures that its clients’ data security comes first. The company allows clients to withdraw money 24/7 and keeps traders’ funds in segregated bank accounts.
Why Trade Commodities?
There are several major reasons to trade commodities:
Diversification of the presence of commodities in an equity-only portfolio can lower the volatility due to the absence of a direct correlation between commodities and other asset classes.
Safe Haven Commodities can serve as a safe haven in times of global economic uncertainty and market turbulence because they can retain their physical value.
Inflation hedging Commodities’ intrinsic value is independent of currencies. They will often hold their value, even if a currency falls during a period of inflation.
Speculation on commodities prices Commodities may be highly volatile, experiencing wild price swings. Trading commodities CFDs is one way to try and profit from significant price fluctuations.
Commodity trading requires careful consideration due to the market’s occasional high volatility and a wide choice of available instruments, from derivatives such as futures and CFDs to commodity-producing companies’ stocks.
With commodities, the chance of making large profits goes hand in hand with the risk of large losses. Commodity prices may be very challenging to predict. The price can change abruptly due to several factors, such as weather, political unrest, and labor strikes. Unlike with stocks, there are almost no fundamental financial metrics, such as price/earnings ratios, interest rates, etc.
