With CFD’s (Contract for Difference) you can trade raw materials, like oil, silver, sugar or gold. This materials are also known as commodities. You can start commodities trading with a limited investment. Even this investment is limited, it’s still a significant amount.
A CFD is ‘a contract for difference’. If you bought gold and it rises to 1,300 dollars and you sell this CFD, you will receive the profit. This also means that there is more risk of losing money with a limited investment.
An example
You want to buy 15 ounces of silver on a trading platform at 1,239.59 dollars per ounce. When you trade with CFD’s the initial margin is low, only 90 dollars. With an investment of 90 dollars you will take a position of 18,59 dollars. You still take the advantage of the full increase of your investment.
The advantages of commodities trading
- You make money by speculating on rising and falling markets
- You cannot lose more money than the amount on your account
- No commissions charged
- Large profits with a limited investment
- You decide your own stop-loss
Want to learn more?
Want to learn more about commodities trading? Compare the different CFD platforms. Many brokers offer a free demo. The advantage of a free demo is, that you can practice with trading fictitious capital. Or open an account right away and start trading CFD’s for raw materials or trade currencies one the Forex market.