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Commodities are all around us, they are the raw materials we need and use in our daily lives. Oil, gas, sugar, coffee, soy, beans, corn, wheat etc.
Commodities markets matter, not only because they trade essential components of our society. They have an important impact on the economies of the world and present attractive investment opportunities.
There are different types of commodities.
Trading commodities is a little bit different than trading stocks.
The price of a stock depends on the supply or demand and the current performance of the company it represents.
Although commodities markets are moved by the forces of supply and demand as well, some of them are perishable and current weather conditions influence on draughts or floods.
Storage plays a fundamental role on hard commodities, soft commodities and energies, which require a specialized type of storage conditions.
For example: you want to buy 10 ounces of gold on the Plus500 platform at 1,239.59 dollars per ounce.
When trading with CFDs the initial margin is very low, only 82 dollars. With an investment of only 82 dollars you take a position of 12,396 dollars. But you still take advantage of the full increase of your investment.
A CFD is a "contract for difference". If gold rises to 1,300 dollars and you sell this CFD, you collect the profit. This means that you can get a large exposure with a very limited investment on any raw material.
Compare the CFD platforms and try the free demos or open an account right away.
With an account, you can trade CFDs on shares, indices, commodities (oil, gold, silver, platinum, etc.) and on the Forex market (currencies).
With the free demo, you can practice with a fictitious capital so that you learn how to trade with CFDs and familiarize yourself with the platform from the brokers we selected.