Commodities Trading with Easy-Forex®
Developments in commodities trading
Trading commodities is one of the oldest forms of exchange. Today, online trading enables access to these markets to millions of people and businesses worldwide with the click of button. Commodities have become increasingly attractive to investors as global borders shrink. Commodities traders can now enter the market without having to take physical possession of the goods and have the potential to profit even if prices rise or fall.
Energy Commodities Trading
The energy commodities which can be traded on the Easy-Forex® platform include a number of
oil trading types: WTI Crude Oil, Brent Crude, Gas Oil and Heating Oil. These commodities are traded in open outcry or electronic markets and are usually traded for the purposes of speculation or hedging. They are now available to trade through the Visual Trading™ platform at Easy-Forex®.
Commodities futures contracts are usually the products traded in commodities exchanges. A futures contract is a contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. In your account you will be able to trade commodities as Day-Trades keeping in mind that the deals are cash settled (there is no delivery of the product) and they must expire on a set date in the future. This date is based on the next futures delivery month on commodity exchanges.
A basic overview of the energy commodities on offer
WTI OIL: West Texas Intermediary (WTI) light sweet crude oil is traded on the New York Mercantile Exchange (NYMEX). It is the most popular oil futures contract, regularly quoted as the benchmark for oil prices globally.
BRENT CRUDE: A light, sweet crude oil sourced from the North Sea primarily traded in the London Brent market. It is named after the Brent goose by the Dutch oil company Shell.
GAS OIL: One of the products of crude oil primarily used for heating and power generation. After petrol, this product represents the largest segment extracted from crude oil.
HEATING OIL: Heating oil is a refined product of crude oil. In Europe it is known as Gas Oil and is used especially to heat North American homes.
NATURAL GAS: Natural gas is favoured as a clean way to produce energy and provide heating around the globe. America and Russia are the biggest suppliers of natural gas with Japan and Europe importers of it.
Additional types of commodities trading
Energy Trading: Energy is vital to the growth of the world’s economies and the faster they grow, the more they consume. Demand for oil and its by-products have risen considerable over the last few years. The price of energy products is sensitive to geo-political events, particularly in the Middle East as one of the largest producers of oil worldwide.
Gold Trading: As a safe haven asset, gold is often desired when traders are averse to risk. Traders use gold as an effective way to diversify their portfolios and to hedge against interest rates.
Silver Trading: Silver is used more and more in technology and industry in general.Even though silver is viewed by some as ‘gold’s poor cousin’, it remains as one of the most traded precious metals. Like its cousin, it is used as safe haven investment by traders who want to diversify their portfolios and add some relative stability.