Commodities

Commodities Trading

Commodities trading are the perfect addition to a trader's portfolio. It holds many benefits for beginner traders as well as experienced ones. Once you trade responsibly, you can achieve great results. Below, we made a list of some of the biggest benefits of trading various commodities.

Commodities Trading

Here are 4 main commodity type

Precious metals

Precious metals

Gold or silver.

Energy

Energy

Crude oil or natural gas

Agricultural

Agricultural

Corn, wheat, or cotton

Livestock & meat

Livestock & meat

live cattle or pork bellies.

Commodities (oil & Energy)

Instrument Description Contract Size (1 LOT) Min Trade Size Max Trade Size Digits
XTIUSD West Texas Intermediate Crude Oil (WTI) 1,000 barrels 0.01 lot 20 lots 3
XBRUSD Brent Crude Oil 1,000 barrels 0.01 lot 20 lots 3
XNGUSD US Natural Gas 10,000 MMBtu 0.01 lot 20 lots 4

Understanding The Oil Market

Understanding The Oil Market

There are a number of factors that drive the volatility of the oil market. First and foremost is the huge demand for oil as fuel and in industry. Supply and demand is crucial to determining the oil price particularly as the yield from certain major oil fields declines. Political instability is also an influence on oil prices some of the main oil production centres are in unstable regions and this can affect production. Market sentiment is also hugely influential on the oil price particularly in terms of short-term speculation, which accounts for the overwhelming majority of oil trades. As an Perfekt Capital Ltd client you’ll get a wide range of material, such as reports, news updates, economic calendar and market analysis, to help you assess the market and make educated decisions.

Commodity Knowledge

Crude oil is a natural and liquid commodity found in rock formations in the earth’s core. Oil wells are essential in the extraction process, as they are formed to release oil from deep within the earth. Oil is an essential commodity in that we make use of it every day once it has been refined into petroleum products such as petrol and gasoline.

Trade oil and a range of energy products on the most advanced platforms with high leverage, competitive spreads, and exclusive news, analysis and educational materials.

For traders who are making a lot of short- term trades, commodity trading is exactly what they need. The commission on commodity is lower than most other tradable financial assets, which makes it ideal for short term traders.

If you are an experienced trader, the commodities market offers larger winning options than other fields.

It's never a good idea to put all your eggs in one basket, so a good trading portfolio has to have various trading assets in order to keep the risk as minimal as possible. Commodities are considered fairly safe compared to other assets and that's why they are a good option to consider when setting up a portfolio.

During inflation, when the value of money goes down, the price of commodities usually goes up. This makes commodities the perfect way to protect your portfolio during those times.

Liquidity providers

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