Traditionally speaking, commodity trading was the sphere of large entities such as corporations or governments. With the rise of online trading and online brokers, however, commodities trading has been opened up to individual investors who can trade commodities on large exchanges such as the London Metal Exchange, the Chicago Mercantile Exchange, and the New York mercantile Exchange or on smaller exchanges like the Dalian Commodity Exchange, which is a hub for the high-grade Copper trade.
The most popular way to trade commodities is via futures contracts, which represent agreements to purchase or sell the underlying commodity at a future date.
Saxo’s strategy team provide expert analysis of commodity trends with a focus on macro fundamentals, technical analysis, seasonal and climate-related factors, manufacturing and political decisions, and cross-asset correlations. The SaxoTraderGO platform offers traders and investors access to a multitude of commodities futures in categories like precious metals, industrial metals, energy, and agricultural commodities while our automated Trade Signals technology continually scans for potential commodities trade opportunities based on chart patterns and success probability.
The commodities market is the space where investors trade physical items that are either grown, as with agricultural commodities, or are extracted from the earth, as with crude oil, gold, and silver. The former group of commodities are termed “soft commodities” while the latter are classed as “hard commodities”. Some examples of the most widely traded commodities include gold, crude oil, silver, platinum, copper, natural gas, wheat, sugar, and coffee.
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Head of Commodity Strategy