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Learn Commodities: From Basic to Advanced

Join our academy and start your journey toward mastering commodities trading like gold, oil, agriculture, and more.
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What are Commodities?

Commodities are basic goods used in commerce that can be physically delivered or traded via contracts. These include:
  • Hard Commodities: Gold, Silver, Crude Oil, Natural Gas
  • Soft Commodities: Coffee, Corn, Sugar, Wheat

Traders speculate on the price movement of these goods using instruments such as CFDs (Contracts for Difference).

Key Features
of Commodities Trading

Tangible assets based on physical goods with real-world demand, like gold used in jewellery and investment

Volatility with sharp price movements during global events, such as COVID-19-related demand drops

Market drivers include weather, geopolitics, supply chains, and demand cycles — for example, hurricanes disrupting oil supply

Diverse sectors like energy, agriculture, and metals offer variety — e.g., crude oil, corn, and silver

Hedging potential through offsetting positions, such as using commodity CFDs to manage oil price risk

Tangible assets based on physical goods with real-world demand, like gold used in jewellery and investment

Market drivers include weather, geopolitics, supply chains, and demand cycles — for example, hurricanes disrupting oil supply

Volatility with sharp price movements during global events, such as COVID-19-related demand drops

Diverse sectors like energy, agriculture, and metals offer variety — e.g., crude oil, corn, and silver

Hedging potential through offsetting positions, such as using commodity CFDs to manage oil price risk

Pros Of Commodities Trading

  • Diversification helps balance portfolios beyond stocks and forex
  • High volatility creates short-term trading opportunities
  • Safe-haven assets like gold often perform well during market uncertainty
  • Global exposure to macro trends and seasonal supply-demand patterns
  • Flexible use for both speculation and hedging, appealing to various trading styles
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Cons Of Commodities Trading

  • Price shocks from unexpected geopolitical or environmental events
  • Lower liquidity than Forex in some markets, leading to wider spreads or slippage
  • Complex influences that require understanding of global supply and demand dynamics
  • High leverage risks, especially with volatile instruments
  • Storage and delivery concerns in physical contracts (not typically an issue with CFDs)
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How to Start Learning Commodities Trading

Starting out in commodities trading requires both foundational knowledge and practical exposure. Here are a few essential steps:

Step 1: Follow Commodity Market News

Track supply and demand trends, geopolitical events, and weather patterns that affect prices

Step 2: Learn Analysis Techniques

Study fundamentals like inventories and economic trends and use charts and indicators to spot price movements

Step 3: Use a Demo Account

Practice trading gold, oil, or agricultural commodities with virtual funds to build confidence without financial risk

Step 4: Take Courses and Attend Webinars

Learn about contract types, leverage, and margin through online courses, and get real-time insights from expert-led webinars

Step 5: Apply Risk Management

Use stop-loss orders, manage position size, and avoid overleveraging, especially in volatile markets like crude oil or natural gas

Get Started With Our Resources

Free eBook

Download our comprehensive trading guide for beginners and intermediate traders looking to sharpen their skills.

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Proven Trading Strategies

Access tested trading strategies designed to improve your entry, exit, and risk management decisions.

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