FXFaith | Commodities Trading

COMMODITIES TRADING

Apart from currency pairs, commodities like oil, gold, and other trade commodities it is referred to as commodity trading.

COMMODITIES TRADING

Metals are one of the most heavily traded instruments of all time. Commodity trading is as old as the financial markets and perhaps even older than that and play a vital role in the world’s economy. Commodities are the raw materials available in this world. Eg: Coffee, Crude Oil and even Gold. There are 2 main categories: soft commodities which include grown goods such as wheat or rice and hard commodities that comprise mined products such as gold, gas and oil.

Top commodity is crude oil and other commodities are metals like natural gas, gold, silver, aluminium, nickel, copper, etc. Oil is undoubtedly the largest and most traded commodity. Crude oil, Gold, and Bitcoin are among the most volatile commodities in the world now.
Crude oil is a naturally occurring petroleum product commonly used in energy production and manufacturing. The purchase of crude oil is usually used for refining to produce the diesel, gasoline, fuel oil, jet fuel, plastics, cosmetics, pharmaceuticals and fertilizers that are needed daily. Therefore, its price has a huge impact on the global economy.

In general, as the rise in oil prices will increase the cost of travel and transportation, thereby increasing inflationary pressures, personal consumption will usually be stagnant, so the upward trend in oil prices will often weaken economic growth.
Gold is also the most attractive and the most traded one. And Silver showed that they can be very volatile, too, and hence, provide a lot of trading opportunities. Potentially, including precious metals into your portfolio may not only diversity it but increase its long-term profitability.
Forex and commodities are two separate trading markets. The former uses currency pairs, while the latter - basic goods or natural resources. However, there are still some connections between them.

In Forex, commodities are next to the currency pairs. This way, both commodities and currencies can be found in a single place for eg: XAU/USD. Not only that, but the commodity prices are also reflected in currencies, mostly in the US dollar. For example, the price of one gallon can be shown as 1.24 USD.
This way, the two markets are interconnected and the developments in one market will have an effect on another. It's a trading instrument that includes gold (XAU) on one hand, and a currency on the other (usually, it's either USD or EUR).

8 Reasons to trade in Commodities with FXFaith.

We offer Gold, Silver, Oil & More...!!
Leverage up to 1:500 for commoditites as well.
Fast Execution under 30 milliseconds.
Competitive variable Spreads from 1.0 Pips.
Demo Trading and Negative Balance Protection.
Lowest Trading Costs. Zero Commission & No Hidden Costs.
Easy deposits and withdrawals: Wide payment systems geography and fast withdrawals.
Trade without owning: It may be expensive to own gold, silver and precious metals but you can take advantage of their price movements entirely online with us.

Trading commodities with FXFaith is as metal as it gets, accompanied with low commissions, tight spreads with leverage of upto 1:500. Open an account and take advantage of the liquidity of the commodity markets when you trade with gold, silver, platinum, palladium as well as the ever popular trading instruments – natural gas and oil.