Commodities are defined as materials that were consumed, like livestock
and corn, oil, coffee and orange juice. Most commodities are traded on
the futures markets and require large capital and market knowledge as you
need to decide a date in the future that the assets will climb or fall.
Trading commodity based CFDs have simplified the process and opened these
assets to many traders.
Trading fundamental commodities will prevail as a longer-term investment.
Global population grown is the main driver of commodity prices, and people
will always want and need food and energy. These commodities have become
essential elements of manufacturing for domestic and industrial consumption
– vital parts of modern living! The complex interplay of factors of supply
and demand of these physical commodities create ongoing fluctuations in
price, providing opportunities for traders to capitalise on.