Commodities

Stonefort offers real-time access to some of the most popular commodities out there

Why trade commodities?

Explore opportunities across a wide range of commodities and precious metals, around the clock.

Go long or short, starting from 0.01 lot, for ultimate flexibility and risk management.

Stonefort’s deep liquidity pools mean low latency, fast execution in one of the biggest markets in the world.

Multiple platforms, same efficient execution and pricing.

Commodities

Commodities

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Commodities

Commodities

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Frequently asked questions

How does commodities trading work?

Trading commodities, such as gold, oil, and agricultural goods, are similar to trading other financial products. Today, most trading is electronic, and commodities trading is no different. Traders seek to profit from price changes driven by supply and demand, economic trends, and geopolitical events.

At Stonefort Securities, we offer a wide range of commodities for trading. While commodities share characteristics with other financial products, they are influenced by more specific factors, and their daily behavior can differ. A solid understanding of the commodities market and effective risk management strategies is essential for those looking to trade commodities.

Learn more about trading commodities in our extensive Trading Guides. 

What are the main types of commodities?

Trading commodities include metals (gold, silver, platinum), energy products (natural gas, oil), and agricultural goods (corn, wheat). These are just a few examples from a broader list of global commodities. Commodities are typically classified into two categories: soft commodities (grown, such as coffee) and hard commodities (extracted or mined, such as gold).

Discover more about the different types of commodities here.

Where are commodities traded?

Commodities are primarily traded on exchanges. However, for those looking to speculate on price movements without taking physical delivery of the commodity, there are other options available, such as Contracts for Difference (CFDs). The Chicago Mercantile Exchange (CME), London Metal Exchange (LME), and New York Mercantile Exchange (NYMEX) are some of the major commodity exchanges. Online trading platforms have democratized access to commodity markets, allowing even beginners to participate.

How can i start trading commodities?

To start trading commodities, you need a trading account. Open an account with Stonefort Securities and gain access to a wide range of commodities and other assets.

It’s essential to familiarize yourself with the commodities you wish to trade, understand market trends, and develop a solid trading strategy to enhance your chances of success.

Learn more about trading commodities in our extensive Trading Guides.

What makes commodity prices fluctuate?

Commodity prices are influenced by various factors, including:

  • Supply and Demand: Changes in production levels and consumer demand directly affect prices.
  • Geopolitical Events: Political instability and conflicts can disrupt supply chains, impacting prices.
  • Macroeconomic Indicators: Economic growth, inflation, and currency volatility shapes commodity prices.
  • Market Conditions: Trader sentiment and speculative activities often lead to price swings.
  • Weather and Technology: Adverse weather conditions and advancements in production technology can also influence prices.
Can i invest in commodities?

Yes, you can invest in commodities. Commodities are raw materials or primary products that are used in the production of goods and services. You can invest in commodities through various investment products, such as:

  • Stocks: Invest in companies that extract, process, or trade commodities, such as oil, gold, or agricultural products.
  • Exchange-Traded Funds (ETFs): Track a specific commodity index, such as the S&P GSCI Commodity Index, which tracks the performance of a basket of commodities.
  • Futures Contracts: Buy or sell a commodity at a set price on a specific date in the future.
  • Mutual Funds: Invest in a fund that pools money from multiple investors to invest in a diversified portfolio of commodities.
  • Physical Commodities: Buy and store physical commodities, such as gold or silver, as an investment.

 

Please note that this information is for educational purposes only and should not be considered as any investment advice.

Is investing in commodities a good idea?

Investing in commodities can be a good idea, but it’s essential to understand the benefits and risks involved. Commodities are raw materials or goods that are used as inputs in the production of other products, such as oil, gold, and agricultural products.

Here are some points to consider:

Benefits of investing in commodities:

  • Diversification
  • Potential for high returns
  • Inflation hedge

 

Risks to consider:

  • Volatility
  • Market risks
  • Leverage

 

Ways to invest in commodities:

  • Physical commodities
  • Commodity ETFs
  • Futures contracts
  • Commodity stocks


Risk is always present when trading leveraged products, including commodities. This content is for informational purposes only and does not constitute investment advice. Ensure you thoroughly understand the associated risks before participating.

What is leverage in commodities trading?

Leverage in commodities trading allows traders to control larger positions with a smaller amount of capital, often just a fraction of the total contract value. This means traders can significantly amplify their market exposure by using borrowed funds, potentially multiplying their profits or losses.

Typically, traders are required to deposit only 3-12% of the contract's notional value to open a trade. While leverage can be a powerful tool for maximizing returns, it also carries significant risks, as losses can exceed the initial investment if not managed carefully.

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