Commodity Trade is a way,
you can get the safest stock market strategies by it,
in this article, we will explain their advantages let’s read it on our web site: Peeker Finacee.
Commodity Trader Advantages
Commodity Trade is very important so in contrast to stock trading or Investment in ETFs or mutual funds, commodity trading is huge leverage.
Tok now how to start commodity trading online you should know that trading futures in commodities, Approximately 10 per cent of the total contract value typically require.
This enables you to make a much higher percentage gains with your assets of trade.
For example, You could have a futures contract for the S&P 500 Index with a deposit margin exceeding $20,000, while several hundred thousand dollars would be needed to purchase each of the actual stocks in the index.
A 20% increase in the index would give,
you a profit of more than 100% from purchasing a contract for the future.
you’d also approximately realize the same absolute dollar amount in profit as from the purchase of all the index stocks, but you only have to make a much lower investment for making that gain.
Future trade in commodities can also give reduced commissions and costs of trading, although, with all the current discount stock brokerages that now exists, It’s not as much a problem as twenty years ago.
Commodity Trade Advantages: Trading in goods
Trading in goods has an advantage over illiquid investments,
such as property,
since if your account has any money,
which is not used to marginalize market positions,
you’re always ready to hold at any time.
A really important advantage and it’s a double advantage, in fact, commodity trading has is which offers change by simple.
Investing in commodity futures covers virtually every sector of the economic futures for agriculture, stock indexes, precious metals, energy futures, and foreign exchange.
Unlike the stock market, though, where thousands of stocks are to be selected which out of often hundreds of different industries because there are only a few dozen future agreements for commodities to look.
So, for instance,
if the price of wheat increases,
then you can make a good profit by investing in futures contracts for Wheat.
But, if you were a stock trader,
hundreds of businesses are to choose from whose fortunes could be affected,
by the wheat price but other market variables would also affect that.
You may end up buying stock in a company with a falling share price,
causes from other factors in the market, despite the company’s favourable shift in wheat prices.
Source: Commodity market (Wikipedia)
Summary of Commodity Trader Advantages
Finally, in the trade-in commodities, Selling short is just as easy to profit as long as you buy.
Short selling is not limited because stock markets are there.
If you have the potential to get the profit you will discover,
that it is falling prices be easy,
and the same with also increasing prices,
because it gives an investor has a big benefit.