What is Commodity CFD Trading?

Overall, Contract for Differences, popularly known as CFD, is a bond between a seller and a buyer. It entails a condition that the seller or the buyer would pay the price difference between the existing value of an asset and the future value of the asset.

In Commodity CFD Trading, you don’t need to actually buy or sell a commodity. Just choose whether the value of a commodity will rise or fall.

How to do Commodity Trading?

Two positions/methods of Trading Commodity CFDs are:

• Long: If you choose that a commodity’s value will increase, you are in Commodity CFD Long position.
• Short: If you choose that a commodity’s value will decrease, you are in Commodity CFD Short position.

Why Commodity CFD Trading?

Trade precious metals and energies with blazing fast order execution that gives your
strategy an advantage.

• Gold and Silver are used as a hedge during economic crisis, therefore we call them the safe haven instruments.
• It is a good alternative to diversify your trading strategy as the market is not driven by any one country but the entire world as a whole.
• They are traded against the US dollar and traded in a similar way to the currency pairs on the platform, except that spot metals trade 23 hours a day.

How is money made through Commodity CFD Trading?

Gain profit through correctly speculating on the price movements of a Commodity. You don’t have the risk of owning the Commodity, as you are only guessing the price movement. The prime focus is only on the price change during the trade exit and entry of that particular commodity.

You won’t get Oil, but you would take a guess through market trends and understanding whether the rate of Oil would rise or fall.

For those who choose Long position in Commodity CFD trading:

• Note down the existing value when you get into the contract. (Value Point 1)
• Observe the market.
• If the value of that Commodity grows up, note down that value. (Value Point 2)
• Close your Commodity CFD contract.
• Withdraw the difference between Value Point 1 and 2
• That difference is your profit.

For those who choose Short position in Commodity CFD trading:

• Note down the current value when you get into the contract. (Value Point 1)
• Observe the market.
• If the value of that commodity declines, note down that value. (Value Point 2)
• Close your CFD contract.
• Withdraw the difference between Value Point 1 and 2
• That difference is your profit.

If your expectation is wrong and the market goes in the opposite side of your prediction, you will incur loss. Even after that, you have an option of mitigating the loss by closing the contract as and when it is required.

If it is profit, you will get paid. If it is loss, you will pay the difference. Among all the commodities, gold commodity trading is the most active form of trading.

Key Advantages of Commodity CFD Trading:

• Liquidity of Online commodity market is high
• Highest levels of trade volumes
• Constant need for demand and supply
• Huge exposure to established markets worldwide
• Get an option to choose both positions: short and long
• Trade either when the market is crashing or booming
• Benefit from the market at any given point of time
• Effective Cost Management & Monitoring
• Flexible Commodity Trading Time
• Commodity rating is high, among CFD traders

Why MintCFD is the best site for Commodity CFD Trading?

• Zero Brokerage fees
• Choose from a wide variety of Commodities across the world
• 100x Leverage: 100x of your deposit amount can be used for trading. With smaller capital, trade larger units.
• Monitoring, Management and Mitigating tools
• Realtime commodity quotes
• Safer to execute orders
• Commodity online tips are available
• Available as an online commodity trading app
• Commodity live trading is growing everyday
• Commodity trading strategy is available

You can start Commodity CFD Trading, by opening your free account in just 4 minutes. You are just one step away from joining the best platform for CFD trading in India.