Commodity Trading on MintCFD

Commodity trading basically deals with the buying and selling of various tangible assets on dedicated exchanges. Traders can invest in metals, energy goods, environmental goods, and agricultural products.

It is an age-old financial practice that has been the backbone of global trade for centuries.

It deals with tangible assets, which range from crude oil to metals.

Trading commodities through Contract for Differences (CFDs) is a smart way to add variety to your investment portfolio. By trading CFDs, you can make assumptions on the price changes of commodities without having to own them.

Some commodities are more profitable due to their strong market performance and global demand. Explore the top commodities for CFD trading on MintCFD, the benefits of adding commodity CFDs in your investment portfolio can increase your chances of making more profits.

Delve into all the information you need before you begin your commodity trading journey.

An Overview of Commodity Trading

Commodity trading refers to the selling and buying of commodities in numerous forms, like raw materials, agricultural products, energy resources, and precious metals like gold, all within a dedicated commodity exchange. It is the exchange that provides a particular platform for participants to trade on standardised contracts for all sorts of commodities.

Commodity trading gained momentum in India long before it started in various other countries. It was the years of foreign rule and dominance that reduced the popularity of trading within a country like India. It is only in modern times that the Indian trading market has witnessed substantial growth.

It is an attractive investment option for both speculators and hedgers.

Advantages of Commodity Trading

Some of the advantages of commodity trading are as follows:

Protection

In the field of commodity trading, when inflation rises to a certain point, the process of borrowing becomes expensive, which certainly impacts profit-making abilities.

Even the cost of goods increases, meaning that the price of essential goods and raw materials rises, causing commodity prices to move higher. Hence, when inflation is rising, trading commodities becomes profitable.

Profitability

Traders can accentuate their profit potential simply by investing in the commodity market. It enables traders to take a significant position within the market by paying a 5–10% profit margin.

This way, in online commodity trading, even an insignificant price increase can eventually increase profit potential rapidly.

Diversification and Transparency

It is the commodities that allow investors to diversify their portfolios, as raw materials have a negative to low correlation with stocks.

The modern electronic trading suite has added to the transparency and efficiency of the market, eliminating all sorts of risk of manipulation. In turn, it enabled fair price discovery through broad-scale participation.

Volatility

Within the field of trading, prices of commodities can happen to be highly volatile by nature due to numerous factors like supply and demand, geopolitical events, and weather conditions. Further, traders can capitalise on these price movements to incur profits at once.

Hedging

Both producers and consumers generally use the concept of trading to lock in prices and protect against adverse price movements. This helps stabilize their revenues and costs.

Why Commodity CFD trading is popular?

Commodity CFD trading has gained popularity for several reasons, since it offers a combination of leverage, flexibility, cost efficiency, and accessibility. In turn, these features make it attractive to a wide range of traders.

Leverage

Generally, commodity CFD trading enables traders to use leverage since they can seamlessly control a larger position with a smaller amount of capital. In turn, it amplifies potential return since and also increases risk. Due to leverage, traders can seamlessly enter the commodity markets with less upfront capital compared to buying the actual commodity.

Accessibility

These days, CFD trading platforms are widely available online, making them accessible to individual traders without the need for large capital or complex setups. In turn, CFDs provide access to a broad range of commodities, including precious metals (gold and silver), energy products (oil and natural gas), and agricultural products like wheat and corn.

Flexibility

It is the CFDs that allow traders to incur profit from both rising and falling markets. As a result, flexibility happens to be advantageous in volatile markets where prices can fluctuate rapidly. It is the traders who can speculate on commodity prices without the need for storage or transportation of physical goods, reducing logistical and cost concerns.

Why MintCFD is the best site for commodity trading?

How to use Leverage for trading commodities?

The use of leverage in commodity trading generally enables traders to control a huge position with a relatively smaller amount of capital. Thus, it amplifies gains.

Leverage is a powerful tool that can provide huge returns. It is critical to have a solid understanding of how exactly leverage works, choose the right brokers, and employ efficient risk management strategies. Thus, by carefully managing leverage and monitoring your trading activities, you can seamlessly maximise the benefits while minimising the risks.

Available Commodities on MintCFD

Commodities can be broadly classified into two categories, i.e., hard commodities, which include natural resources like gold, oil, and metals, and soft commodities, which include agricultural products like wheat, coffee, and sugar. Further, we will discuss commodities that are available on MintCFD.

Gold

Gold forms a critical part of this trading landscape because of its historical significance, intrinsic value, and the various roles it plays in overall trading strategies.

Be it for hedging, diversification, or speculation, gold trading does offer huge opportunities and requires a solid understanding of the numerous factors that often influence its price, the trading methods available, and effective risk management strategies.

MintCFD allows users to trade gold easily without the need to store it. With the competitive spreads and instant price updates MintCFD offers, traders can make the most out of the market movements of gold.

Copper

Copper is a critical commodity in global markets that reflects economic health and industrial activities.

Thus, trading copper offers numerous opportunities through futures, options, ETFs, CFDs, and mining stocks. Successful copper trading requires understanding the factors that influence its prices, employing strategic analysis, and practising an efficient risk management method.

Silver

Silver is a key commodity in the field of trading. Because of its dynamicity, it happens to be an attractive asset for all traders.

Industrial Demand - Silver is used in various industries, including electronics and solar energy, affecting its price.
Price Volatility - Silver often experiences more significant price fluctuations compared to gold.
Diversification - Adding silver to your trading portfolio can provide many benefits in terms of expanding your portfolio.

Oil

Oil is a popular choice for CFD trading because its price is often influenced by world events and the economy.

Market Volatility - Oil prices can be highly volatile, providing numerous trading opportunities.
Global Demand - As a crucial energy source, oil remains in high demand, influencing its price movements.
Diverse Factors - Prices are affected by many factors including political events, natural disasters, and changes in supply and demand.

Natural Gas

Natural gas is a valuable energy commodity, and its prices are affected by demand, supply, and economic factors.

Trading commodities with CFDs on MintCFD offers numerous advantages. You get high leverage, the ability to go long or short, and access to a variety of markets. These commodities are expected to be among the best commodities to trade due to their market dynamics and global demand.

By understanding these markets and using the tools available on MintCFD, you can make informed trading decisions and potentially reap significant rewards.

Start trading the top commodities with MintCFD today!

What is Commodity Trading?

Once treated as a rare trading method and limited only to the most-experienced traders, Commodity Trading has now become a household name in the field of modern trading. With the wide assortments available in the commodities market, it is now an unavoidable entity.

Through Commodity Trading, one can sell or buy commodities at rates based on the supply and demand principles. The primary categories of commodities offered by MintCFD are energy and metal.

Energy: Gas and oil are the most-traded in this sub category.
Metal: It entails both industrial metals like copper, iron, zinc, lead and aluminium and precious metals like gold and silver.

Commodity Trading can take place in both Spot Market and Derivative Market. Making a commodity online is not the focus, as trading commodity online is.

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How to start Commodity Trading?

Profit is gained through buying a commodity at its current price and selling it in future at a higher price.

Among the various ways of trading commodities, Direct Investment, Stocks, ETFs and CFDs are the imperative ones.

Direct Investment: It is a normal way of buying a commodity like Gold from a merchant directly and get to have a physical ownership. Apart from complications in terms of purity and storage, the transaction cost involved is higher.
Stocks: Instead of getting and maintaining a physical commodity, you can get the stocks of leading companies handling Gold as their key business. There is always a chance of getting profit, even when the commodity value decreases as the company’s value increases. However, it involves both fundamental and technical analysis of the company.
ETFs: Widely known as Exchange-traded Funds, ETFs are lucrative for commodity traders. It deals with the commodity’s price fluctuation. Nevertheless, not all commodities are associated with ETFs.
CFDs: Contract for Differences is the best way to trade commodities. As there is no ownership involved in Commodities CFD, storage cost is cut. It allows you to take both short and long positions. Brokers profit from the spreads and traders profit from the price difference, so there is no brokerage charge or commission.

Key Advantages of Commodity Trading:

Diversifies your portfolio
Better returns, ahead of inflation
Best for Hedging purposes
Superior liquidity
Option to trade in smaller amounts
Profitable returns
Commodity trading strategy is available

Why MintCFD is the best site for Commodity Trading?

Zero Brokerage fees
Choose from a wide variety of Commodities across the world
100x Leverage: 100x of your deposit amount can be used for trading. With smaller capital, trade larger units.
Monitoring, Management and Mitigating tools
Realtime commodity quotes
Safer to execute orders
Commodity online tips are available
Available as an online commodity trading app
Commodity live trading is growing everyday
Commodity trading strategy is available

You can start Commodity Trading, by opening your free account in just 4 minutes.

FTD bonus- 5% of total deposit can be availed upon FTD

Campaign bonus- Get 10% of winnings of Demo ID upon FTD

Learn more about stocks

Our knowledge section has info to get you up to speed and keep you there.

What is Equity Trading?

Equity is the total amount or value invested in a company or business, excluding the debts and liabilities. If you have 5% of equity in a company, then you own 5% of the company. It usually doesn’t encompass public participation. Price of an equity doesn’t fluctuate, as it doesn’t involve demand and supply.

What is a dividend?

A dividend is a payment made by a corporation to its stockholders, usually out of its profits. Dividends are typically paid regularly (e.g., quarterly) and made as a fixed amount per share of stock—the more shares you own, the larger the total dividend payment you’ll receive.

What is Income Tax?

Income tax is a type of direct tax that a government imposes on its people’ earnings. The central government is required to collect this tax under the Income Tax Act of 1961. Every year in its Union Budget, the government can adjust the income slabs and tax rates.