How to Start Commodity Trading Online in Simple Steps

[peter.nguyen]

What is Commodity Trading?
Commodity trading is the process of buying and selling commodities and derivatives on a commodity exchange where traders speculate on future prices of commodities. An investor who anticipates a commodity’s price will rise in the future will buy the prospective contracts, which is called “going long.” Conversely, if the commodity price is expected to decrease, investors will sell the prospective contracts, commonly known as “going short”.

Commodity trading has been around for thousands of years, and many investors have been able to profit from it still in the modern day. Gold, Silver, Crude oil, Brent oil, and Natural gas are some examples of commodities available worldwide for trading. Commodity trading is the most widely traded market in the world, with almost 50 major exchanges operating all over the world.

Crude oil is the most widely traded commodity in the world, which you can trade via a spread betting or CFD trading account.

It is also possible to trade commodities in physical form by purchasing and holding them. Generally, this is a good option if you are looking to purchase gold or some other precious metal, but it is not appropriate for other commodities. Find out the top crude oil trading tips and strategies for information on how to capitalize on the world’s primary energy source with commodity trading.

Most Traded Commodities on the Financial Markets​

Before the advent of the internet, the majority of commodity trading took place in a physical setting. Price fluctuations in these goods are caused by the impact of supply and demand. In commodity trading, traders can profit from these constant price fluctuations by leveraging them to their advantage.
Listed below are the most commonly traded commodities on the financial markets.

• Agricultural commodities — Mostly agricultural products such as coffee, sugar, soya bean, chana, jeera, rice, rubber, etc.
• Metal commodities — Usually industrial metals like copper, aluminum and lead, as well as precious metals like gold and silver.
• Energy commodities — Natural gas, crude oil, coal, and other fossil fuels, as well as renewable energy sources like wind and solar power, are all included.
• Livestock commodities — These are generally live animals, such as cattle, pigs, sheep, and other types.

Profitable commodity trading begins with understanding how to choose the best commodities to trade. There are some commodities that trade more actively than others, so at this point, we hope you have a clearer understanding of what commodities are and how they are traded around the world. Let’s learn how to trade it to make a profit online.

What is Online Commodity Trading?​

Online commodity trading is a process of buying and selling commodities online on a brokerage platform with the aim of generating profits. Trading commodities can be a lucrative way to make money from fluctuating commodity prices. If you buy a commodity, such as gold or crude oil, you can expect its price to increase in the future. Upon reaching the target price, you can sell the commodity to earn a differential profit. However, in order to be able to engage in commodity trading, you have to open a trading account with a brokerage firm.
In the same way as stock and forex trading, a variety of commodities can also be traded online through certain exchanges. The London Metal Exchange (LME), the Chicago Mercantile Exchange (CME), the New York Mercantile Exchange (NYMEX), and the Intercontinental Exchange (ICE) make up four of the world’s largest commodity exchanges in existence.

Who is a commodity trading broker?​

Brokers are an essential part of the process of facilitating commodity trading; whether the trades are executed online or over the phone, trading cannot take place without them. Commodity brokers are typically brokerage firms or intermediate who place trades in commodities for their clients as a service. They might use a trading platform that places and executes trades electronically. Brokers are essential to exchanges in order for them to generate revenue. Each broker has its own set of rules governing how they conduct business.
In order to have successful trading experience, it’s crucial that you choose the best brokerage as the first step. It is crucial to understand that the decision you make will have an impact on the quality of service you receive, the transaction fees, and the spread costs associated with your trades.

5 Simple Ways to Start Commodity Trading with AximTrade​

Trading commodities is now very simple and straightforward if you choose to do so with AximTrade. Here are the 5 simple steps to start Commodity trading online with AximTrade.

1. Open a Trading Account — To open a commodity trading account, log in to your member account from AximTrade login, and click on the “+ Open Extra Account” button on the top right.
2. Choose your Trading Asset — AximTrade allows you to select your trading asset along with the forex market you wish to trade. Forex, Stocks, Crypto, Energy, Commodities, Crypto and Indices are all available through AximTrade.
3. Choose your preferred account type — You can choose between Standard, Cent, ECN or Infinite leverage accounts. You can also choose a Demo account if you’re a beginner. Here’s how to choose the best trading account type for you.
4. Name the Account — Give your account a name and create trading and investor passwords. It is not recommended that the investor password and the account password be the same. Don’t forget to use lowercase and uppercase letters, as well as numbers. Click “Done”.
5. Start Trading Commodities — Your commodity trading account is now ready to trade. All your accounts can be found under the “My Accounts” tab.

With AximTrade, you can trade commodities and forex with the best trading conditions and with the lowest possible investment capital. With AximTrade, spreads and margin requirements for commodities trading are among the lowest. A wide range of tools and trading instruments are also available to traders in order to execute trades with confidence. Consequently, this will make it feasible for you to generate impressive profits and reduce commodities trading risks.

Source: How to Start Commodity Trading Online in Simple Steps