Commodity trading is the buying and selling of a wide range of commodities such as energy, metals,
oil, gas and agricultural products.
Commodities are essentially the raw materials from which other goods are created; the basic building blocks of the global economy. Consequently, they often serve as an excellent investment vehicle. Commodities fall into two broad categories: hard commodities and soft commodities.
Hard commodities are those that are mined from the earth or extracted from natural resources. This category includes metals such as gold, silver and iron, and energies such as oil, natural gas and coal. Soft commodities are agricultural products such as livestock and crops. The commodity markets are popular among traders. This is because they are highly volatile, a feature that provides traders with greater opportunities for success. What separates commodities from other goods is the fact they are interchangeable and standardised, with their values set by the relevant commodity exchange.
Both soft and hard Commodities, such as cocoa, coffee and copper, can be used as standalone trading opportunities or to complement a diversified portfolio. Capitalize on the rising and falling prices of these assets with CFDs and the superior trading conditions offered by FinStacksFX.
