Commodity markets are markets in which raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold via standardized contracts.
Such markets are some of the oldest market types, their roots found in the trading of agricultural products. Starting with wheat and corn, a lot of other basic foodstuffs were gradually added. Exchange-traded commodities have seen an upturn in the volume of trading since the start of the decade. This was largely a result of the growing attraction of commodities as an asset class and a proliferation of investment options which has made it easier to access this market.
Commodity trading provides an ideal option for asset allocation and also helps you to hedge against inflation and buy a piece of global demand growth. Commodities are comparatively easy to understand as far as the fundamentals of demand and supply are concerned. Retail investors should understand the risks and advantages of trading in commodities futures before taking the leap. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option.
Trader’s Way offers its clients the most popular commodities CFD contracts online as well as trading at the most favorable terms.
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