Commodities

Commodities

rising oil barrel, 3d rendering

Trading oil with no prior knowledge
Trading commodities used to be available only for professional traders only and are not open for private investors. But ever since contract for difference or CFD’s were developed, it became widely available for new investors with smaller capitals. This opened the door for anyone to join in trading precious produces that used to be an exclusive market.

However, it is still important to know that trading commodities such as oil, gold and silver is still a very complex task and in order to have successful trades you still need to have a solid determination. Thanks to binary options trading, it allows you to trade merchandises in the market and is much easier to learn compared to the complex CFD’s. You simply need to guess the price movement of a commodity and if you’re prediction is correct after the expiration then you will earn revenue. What makes using this new method better is that you’ll be able to utilize your trading tactics more appropriately since you are aware of the risk and your possible revenues even before you trade. Trading these types of assets allows you to start with just a minimal investment. You don’t need to be a financial expert and all you need is the skill of predicting whether the prices will go up.

What commodities can be traded?
This market is actually one of the world’s largest markets covering various classes like agricultural products such as wheat and sugar which are almost solely traded on the Chicago Mercantile Exchange; and metals, precious metals and energy assets which are majorly traded in the New York Mercantile Exchange and the London Metal Exchange. In times of emergencies and calamities, gold, silver and even crude oil can be the key substitute asset for trading. These freights are very popular investment products that can be traded online by binary option traders.

Gold alone is an appreciated commodity since it is only in limited supply and is the primary market whenever there is a crisis since investors are always moved to precious metals. This is the reason why many traders prefer to trade in the gold market because they know that its value will always grow and rarely depreciates. Currently, the strongest market for this precious metal is India since their culture requires this valuable product especially during the wedding season where there is always a considerable increase in demand for gold.

Silver on the other hand is one of the main assets in the electronics industry. Its high electrical conductivity and high thermal conductivities makes it a highly valuable product especially the solar industry. There is always a great demand from this sector and because it is a rare commodity there is a solid chance that the price will always appreciate.

Compared to precious metals like gold and silver, crude oil is not as valuable as an alternative investment but the advantage however of this commodity is that it has a very limited reserve and therefore its price can considerably go up especially in times of crisis.