Trading commodities

kokonut · 9 February 2018

Hey all,

I've been interested in awhile to trade commodities however I have a few questions.

1. Do you have to use a CFD account to buy/sell commodities or can you just buy/sell commodities without CFD account?

2. What is the main broker preferred to be used in here ?

Thanks in advance

peter2 · 9 February 2018

1. No. The routine way to trade commodities is through futures products. However this is only suitable for larger account sizes as some futures products require 6K margin per contract.

CFD products can be used by those with smaller account sizes, but the costs are a bigger percentage of your results when compared to futures.

2. IB and other US futures brokers.

kokonut · 10 February 2018

peter2 said:
1. No. The routine way to trade commodities is through futures products. However this is only suitable for larger account sizes as some futures products require 6K margin per contract.

CFD products can be used by those with smaller account sizes, but the costs are a bigger percentage of your results when compared to futures.

2. IB and other US futures brokers.

Thanks sounds great

peter2 said:
1. No. The routine way to trade commodities is through futures products. However this is only suitable for larger account sizes as some futures products require 6K margin per contract.

CFD products can be used by those with smaller account sizes, but the costs are a bigger percentage of your results when compared to futures.

2. IB and other US futures brokers.

Hey thanks for the response I'll look into them, do you use tradingview for your charting ?

kokonut · 13 February 2018

peter2 said:
1. No. The routine way to trade commodities is through futures products. However this is only suitable for larger account sizes as some futures products require 6K margin per contract.

CFD products can be used by those with smaller account sizes, but the costs are a bigger percentage of your results when compared to futures.

Just to confirm there is no other way buying commodities only using futures or CFD to buy them? Can you still trade commodities like shares though when using CFD's?

kokonut · 13 February 2018

Sorry I meant can you still trade CFD's like shares ?

peter2 · 14 February 2018

Commodities are the market, eg let's use gold. Gold is the market.

We can trade the gold market using a variety of financial instruments eg. futures, options, ETFs, CFDs of ETFs, CFDs on gold stocks, CFDs of futures products and over the counter CFDs like XAUUSD, XAUEUR on MT4 platforms.

You can buy/sell CFDs in much the same way that you buy/sell shares. CFDs are leveraged fin products with very reduced margin (initial outlay) requirements. You must be aware of the product disclosure conditions of your CFD provider before using them.

Smurf1976 · 14 February 2018

ETF’s are a simple way to go long depending on what commodity you want to trade.

Eg OOO (crude oil) or GOLD (gold) can be bought and sold just like any other share.

kokonut · 15 February 2018

Wow thanks for the help.

Is CMCMarkets used by anyone in here or any thoughts on them ? they do have a variety of commodities to trade.

noirua · 1 November 2018

noirua · 19 March 2024

mullokintyre · 1 August 2024

For those interested in commodities

market Watch has seen a deistinct slowing of the proces of commodities this year.
Mick

rcw1 · 27 September 2024

Good morning

Copper is back above the $US10,000 a tonne mark in London. Gold reset its record high yet again, and silver rose to its highest level since 2012 ... Nice

Kind regards
rcw1

mullokintyre · 4 October 2024

Commodities index at a 13 year high.
Inflation?
What inflation?
Mick

Trading commodities

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