Trade the Most Popular Commodities
Trade a range of commodities, including crude oil. CFDs on commodities offer plenty of trading opportunities due to their low or negative correlations. Buy and sell CFDs on commodities and benefit from competitive spreads and flexible leverage across our whole commodity range.
Why Trade Comodities?
High Liquidity
Deep liquidity and protection against inflation add to the appeal of this asset class for both beginners and professional traders.
Diversification
Commodities have low correlation with stocks. Therefore, trading commodities is a great way to diversify your portfolio and hedge against risk.
Go long or short
CFDs allow you to buy (go long) or sell (go short). So, you can make a profit when the commodity falls in value, not just when it rises. However, you can also take a loss from price movements.
Trade 24/5
Most commodity markets are open on a 24-hour basis so you can trade 24 hours a day, 5 days a week.
Competitive spreads
Keep your costs down with spreads from 3 points.What Determines the Price of Commodities?
Commodity prices are determined by fundamental factors like weather, strikes and geopolitical instability which affects the supply and demand of commodities.
Supply and demand
Commodity prices rise with increasing demand, and also when the overall supply falls. On the other hand, the price of a commodity will fall when there is decreasing demand and increasing supply.
Geopolitical situations
Some commodities like crude oil are mainly produced in countries around the Middle East that experience political uncertainty. Therefore, the price of Brent, for example, can be heavily influenced by tensions that occur in the region.
Currency movements
Commodities are generally priced in USD. As the value of the USD rises and falls, so can the price of commodities. For example, if the USD experiences a sharp increase against a basket of major currencies the prices of commodities such as crude oil and other energies.
Economic Growth
The economic growth of a country can also affect the price of a commodity because economic growth determines the purchasing power of its population.Exbitam, with registered address of 51 High Street, Arundel, United Kingdom, BN18 9AJ.
Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.
Exbitam does not offer its services to residents of certain jurisdictions such as USA, Iran, Cuba, Sudan, Syria and North Korea.
BIT EXCHANGE LTD
Company number 13136438