Commodities (Gold & Crude Oil Trading)

The commodities market can be separated into four distinct categories: metal, energy, livestock and meat, and agricultural. Among the various types of commodities, crude oil and gold are the most popular assets to trade. Trading commodities is a great way to diversify your portfolio, as they’re typically reliable in a time of market volatility.

Trading gold, oil, and other commodities with CFD allows you to leverage a sizeable return with a small sum. Open an account on Traze and start your crystal-clear trading journey with a minimum deposit of USD50.

What are commodities?​

Commodities are the basic primary goods that form the foundation of our economy. They can be separated into four distinct categories: metal, energy, livestock and meat, and agriculture.

Raw materials like crude oil, natural gas, gold, and silver are all commodities, while gold and crude oil are most commonly traded. These commodities are typically in high demand and consequently always hold their value. However, oil in particular is susceptible to rapid fluctuations caused by international political events, and this makes it a popular choice for traders.

Commodities
Stock52 Week RangeChart (24H)
XAUUSD
Gold vs US Dollar
XAUUSD
XAGUSD
Silver vs US Dollar
XAGUSD
XPTUSD
Platinum US Dollar
XPTUSD
XPDUSD
Palladium US Dollar
XPDUSD
NG
Natural Gas
NG
UKOIL
Brent Oil
UKOIL
COPPER
Copper
COPPER
CoffeeAr
Coffee Arabica
CoffeeAr
Corn
US Corn
Corn
Cotton_*
US Cotton
Cotton_*
SugarRaw
Sugar No. 11
SugarRaw

What are the advantages of trading commodities?

  • Diversify your portfolio: Trading commodities is a good way to hedge against your stock and bond investments
  • High growth opportunities: The commodities market is very dynamic, meaning there are lots of opportunities for rapid growth
  • Provide some security against inflation: With some commodities in your portfolio, you’ll be well placed to benefit from a market upswing

More about commodity trading

A CFD (Contract for Difference) is a financial product that allows you to speculate on future changes in the market. There are all sorts of CFDs available for the commodities market.

You might take a CFD on the spot price of a commodity, like gold, which is the currently quoted price, or you can choose to trade a CFD based on the gold futures price. Typically, there are standard sizes of contract such as 10 ounces or 100 ounces of gold, and mini contracts for 1/10 of the standard size. CFD investors never take ownership of the commodity itself.

No matter the kind of CFD you take, or the size of the contract, your return will depend on the change in the value of your chosen commodity. And, as with all CFDs, you can trade on margin, which may be as little as 3% of the value. If you trade on 1:10 leverage, you only need to invest 10% of the asset value. Typically, you’ll be charged overnight interest for every day that you hold the CFD as if you had borrowed the money from the broker to buy the full quantity.

Kicking off your commodities journey is easy with the help of Traze.

  1. First, you need to register for a trading account. You can do this online, and the process only takes minutes.
  2. Once you’ve added your personal information and verified your identity, you’ll need to deposit some funds to start trading with. The minimum deposit varies depending on the account you choose ($50 is the minimum for a Mini Trading account).
  3. After successfully injecting some capital into your account, you’re ready to trade! Simply download the Traze MT4 trading platform and get started on the commodities market.

Typically, you can trade commodities like gold and silver by using CFDs or Futures. Both financial products are derivatives, which allow you to speculate on the future price of the commodity without taking ownership of the good itself.

Futures are a contract where one party binds themself to make or take delivery of a pre-determined quantity and quality of a good on a set date at an agreed price. It’s very unusual for parties in this future to ever take or make physical delivery of the good in question — it’s more about the promise. Futures are traded on margin, and they’re heavily pegged to the price of the commodity, making them hugely volatile with a high risk/high reward investment.

CFDs, on the other hand, are a theoretical order to buy or sell a certain amount of gold, and the profit or loss on the CFD is determined by the fluctuation in the price. Trading CFDs is extremely popular, partly because they’re so liquid, meaning you can enter and exit positions quickly, even if you’re taking a very large position.

When it comes to commodities, timing is everything. You can conduct trades on an almost 24/5 basis, with a two-day break from Friday afternoon until Sunday morning. The markets open and close in each location across the world according to local time zones. They generally open around 9:30 am local time and close at 4:30 pm.

However, each market experiences a ‘busy’ period, when traders of all types rush to close out existing positions and enter new ones. This means liquidity increases, creating an array of strategic trading opportunities. The busy period normally occurs in the last half hour before the day closes.

As a beginner, how can I learn to trade gold, oil and other commodities?

The commodities market can seem intimidating. But at Traze, we go the extra mile to provide training resources to help traders of all levels perform at their best in this market.

  • For new traders, we recommend utilizing our demo account. This is a free way to practice trading, and it’s totally risk-free.
  • On top of this, there is a range of trading tutorials on our website — and these are valuable even for experienced traders who want to refresh their skills.
  • Plus, our trailblazing MT4 trading platform comes with advanced analytical tools and indicators that will help you with all your technical analysis, so you can learn as you trade.

Zeal Holdings Limited Incorporated and registered in British Virgin Islands with Company Registration: 2006432. Zeal Holdings Limited, as a Group is composed of Multiple Brands 100% (Wholly) owned, authorised and regulated in various jurisdictions through the following Subsidiaries:

Traze (Pty) Ltd Company Registration Number: 2016/164943/07 and registered address: Dock Road Junction Cnr Dock Road and Stanley Street V&A Waterfront Cape Town 8001, South Africa. Authorised by the Financial Services Conduct Authority with FSP (Financial Services Provider) Number: 48248. Traze (Pty) Ltd does not carry out any Principal activities and is not an ODP.

Zeal Capital Market (Seychelles) Limited, is regulated as a Securities Dealer by the Financial Services Authority of Seychelles, license number: SD027. Its principal office is at: Office 1, Unit 3, 1st Floor, Dekk Complex, Plaisance, Mahe, Seychelles.

Zeal Capital Market (Seychelles) Limited does not provide services for residents of certain countries such as the United States of America, Brazil, Canada, Egypt, Iran and North Korea (Democratic People’s Republic of Korea) and EU countries.

Official Website: www.traze.com | © 2024 Traze

Zeal Capital Market (UK) Limited is authorised for specific activities and product types including dealing in investments as agent, dealing in investments as principal, arranging (Bringing about) deals in investments and making arrangements with a view to transactions in investments by the Financial Conduct Authority, FCA Registration Number (FRN): 768451. Its principal office is at: No. 1 Royal Exchange, London, EC3V 3DG, United Kingdom.

Risk Warning: Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. You may be required to make further deposits in order to meet your margin requirements. You should consider whether you understand how CFDs work and whether you can afford to take the risk. The historical financial performance of any underlying instrument is no guarantee or indicator of future performance. Trading financial derivatives may not be suitable for all investors. Please ensure that you fully understand the risks involved, and seek independent advice if necessary.