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Commodity Trading
Trading commodities involves buying and selling raw materials or primary goods that are typically used in the production of other goods or consumed directly. Commodities can be classified into several categories, including agricultural products (e.g., wheat, corn, soybeans), energy commodities (e.g., crude oil, natural gas), metals (e.g., gold, silver, copper), and soft commodities (e.g., coffee, sugar, cotton).
Diversify your Portfolio
Adding commodities to an investment portfolio might assist to diversify risk and lower volatility. Commodities frequently perform differently than stocks and bonds, giving an extra source of returns that may not be correlated to other assets.
Migrate your Risk
Inflation Hedge
During periods of strong inflation, commodity prices rise, conserving purchasing power and assisting investors in maintaining the true worth of their portfolios. By keeping commodities, investors can protect their wealth against the eroding impacts of inflation
Protecting Your Purchasing Power
Speculative Opportunities
Many factors influence the commodity market, including supply and demand dynamics, weather conditions, geopolitical events, government actions, and macroeconomic indicators. These characteristics allow you to speculate on short-term price swings and profit from volatility in commodities markets.
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Store of Value
Many commodity markets are highly liquid, meaning that traders can easily enter and exit positions with minimal price impact. High liquidity ensures that investors can quickly convert their holdings to cash if needed.
Global Market Influence
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Popular Forex Pairs
Why trade on Commodities with KudoTrade
Wide range of commodities
Trade a wide range of major, minor, and exotic currency pairs to diversify your forex portfolio.
Real-time market data
Trade a wide range of major, minor, and exotic currency pairs to diversify your forex portfolio.
Leverage trading
Trade a wide range of major, minor, and exotic currency pairs to diversify your forex portfolio.
Diversity your portfolio
Trade a wide range of major, minor, and exotic currency pairs to diversify your forex portfolio.
Risk management tools
Trade a wide range of major, minor, and exotic currency pairs to diversify your forex portfolio.
Trade on the go
Trade a wide range of major, minor, and exotic currency pairs to diversify your forex portfolio.
Frequently Asked Questions
What are the main categories of commodities?
Commodities are categorised into 3 main categories.
- Agricultural commodities (e.g. wheat, corn, soybeans)
- Energy commodities (e.g. crude oil, natural gas)
- Metals commodities (e.g. gold, silver, copper)
What factors influence commodity prices?
Commodity prices are influenced by various factors, including supply and demand dynamics, geopolitical events, weather conditions (especially for agricultural commodities), currency fluctuations, government policies, global economic trends, and market speculation.
What factors influence commodity prices?
Commodity prices are influenced by various factors, including supply and demand dynamics, geopolitical events, weather conditions (especially for agricultural commodities), currency fluctuations, government policies, global economic trends, and market speculation.
What is a spot price in commodities trading?
The spot price is the current market price at which a commodity can be bought or sold for immediate delivery. This requires dealing with storage, insurance and other logistical considerations.
