Online trading is full of investment opportunities on the most varied underlying instruments. In fact, you can trade on many different assets such as currency pairs, indices, stocks, stocks, and so on. In this sense, one of the most engaging and profitable investments is always that in raw materials https://www.abouttrading.es-/
In this article we want to analyze the advantages deriving from trading in commodities (an often used synonym of raw materials), an investment field that, through CFDs, today allows many traders to earn by trading in: oil, gold, copper, coffee, cotton and much more.
Advantages of commodity trading: a market of opportunities
It is true that in recent years many investors have moved to more lucrative but also riskier markets such as equity, but this does not mean that commodities are not convenient to invest. On the contrary, thanks to their greater stability, their performance is more predictable and therefore more suitable for many traders who want to take less risks, but above all for beginner traders.
Commodities are still very often included in trading portfolios, thanks to the valid opportunities they offer, let’s see some of the advantages:
They offer the opportunity for diversification with respect to investments in currencies and stocks.
They are estimated to be positively correlated with inflation.
They are considered an excellent insurance tool against unforeseen, extreme or catastrophic events (wars, geopolitical shocks, hyperinflation).
Commodities trading: which commodities to choose?
Even in the field of trading in commodities there are considerable differences, for example it is very important to assess what type of investment you want to make: that is, whether you intend to invest in the short, medium or long term.
To speculate in the short term, what is certain remains the fact of having to choose high volatility commodities, such as oil. A commodity such as crude oil is much more subject to price changes than the others : for example, oil influences each other with the trend of the dollar, the main currency in the world. For long-term investments, on the other hand, it is advisable to use gold given its stability, in fact it is used as a shelter from macroeconomic, banking and monetary risks, its value could decline in view of the global recovery.
Online trading how it works: Simple explanation
The investor, defined as a ” trader “, by means of electronic devices in his possession, registers with an online broker regulated in his country, carries out all the steps for the activation of his trading account, after which he is ready to start carry out market orders through the trading platforms made available by the broker himself.
