Not so long ago trading commodity was only meant for the professional contestors and mostly done by bond traders. To a lot of private traders the seed capital to start trading was too high.
A few years ago the commodity market got more attractive to private traders when the CFD’s got available. Plus500 is one big player in the Contract for Difference market. CFD’s make it possible for a lot of people to start trading, however the stock trading market is still complex.
Thanks to binary options the commodities market is easy to trade. The benefit of trading with binary options is that you only have to predict if the price goes up or down. And when you do this right, in the end you will receive the adjusted rate. While the risk and result are already known you can concentrate on the trading strategy.
The Commodities Exchange Market
The commodity trading market is one of the largest markets in the world. The commodities market is about a third of the global market. We can devide the commodities market in the next divisions:
- Energy (Oil, gas, cole, ..)
- Metal (Iron, Steel, Copper, ..)
- Precious metal (Gold, Solver, Platinum, ..)
- Agricultural (Graines, Coffee, Sugar, ..)
The main trading place for energy, metals and precious metals is the New York Mercantile Exchange. Another big trading place is the London Metal Exchange. Agricultural commodities are mainly traded in the Chicago Mercantile Exchange.
Especiallu during the crisis commodities are a perfect investing asset. This counts especially for precious metals like gold, silver and platinum, but oil is an interesting investment too.
These three main commodities can be traded at commoditie broker GOptions, Interactive Options and 24Option.
Gold, Silver, Oil
Gold is known for being a safe haven. In economic volatile times big traders often invest in gold. Paper money can be manufactured when the demand rises, unlike gold.
Despite gold being loved, the jewelry industry is the only industry interested in it.
On the contrary silver is wanted in a more industries: electro, solar and also the water companies can use it.
Black gold, also know as oil, is much more interesting than paper money especially in dificult times. Again, oil is rare.
Binary options in commodities
Compared to bonds binary options offer you to start to trade with less money. Especially in cfd trading it is easer to get in to the money. The commodity prices are relative volatile. With binary options you are trading with a less risk since it is only ‘profit’ or ‘loss’. Your prediction is either right or wrong.
Where to trade binary options commodities
GOptions is the commodities broker we recommend for binary options trading. You can read a binary option review here. They have a multilingual platform suiteable for the mostly used operating systems and devices. Their biggest advantage is the Ladder option and other great functions like rollover, double-up, etc.