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Commodity trading

Welcome to trade Contracts for Differences (CFD) for commodities such as gold and crude oil on the award-winning MT4 platform.

commodity markets

Commodities refer to physical raw materials such as corn, wheat, petroleum, and precious metals. All agreements and contracts for buying and selling these raw materials are referred to as commodity trading. As long as you can physically exchange these commodities, many transactions are conducted through futures contracts. The trader agrees to buy or sell the commodity at a specific price and date.

Commodity trading refers to investors agreeing to invest funds and speculate on commodities. It has many similarities with stock trading or foreign exchange trading. Nevertheless, investors are still in a state ofTrading bulk commoditiesEngage in speculation rather than buying and selling stocks to make a profit. A commodity is a commodity with intrinsic value and supply consistency, which can come from multiple suppliers.

Trading depends on supply and demand, because when supply is limited, commodity prices will rise. A sudden increase in supply can lead to a sharp drop in commodity prices. In this way, commodity trading is affectedcommodity marketThe impact of supply and demand levels.

Market entities that want to trade various commodities and enter into derivative contracts must deal with commodity exchanges. Derivative contracts are typically agreements or tradable contracts whose value varies based on the price of the asset rather than the price of the asset itself. Commodity exchanges enable people to conveniently trade commodities such as gold without actually owning them. Some of the most famous commodity exchanges include the New York Mercantile Exchange (NYMEX). The Chicago Mercantile Exchange (CME) provides the most diverse range of tradable derivatives for speculation and risk management.

Commodity trading

Commodity trading involves betting on the trend of commodity prices. When people expect prices to rise, they will buy futures(Long)When they think the price will fall, they sell futures(SHORT POSITION)。

Although you can choose to purchase physical goods and sell them yourself, it is more common for people to trade futures contracts. These contracts specify delivery dates, prices, quantities, and other rules. Important manufacturers and large consumers often engage in global commodity trading for risk management purposes to protect themselves from price fluctuations.

Recently, online commodity trading has attracted many investors. Compared with traditional commodity trading, it increases the convenience and ease of transactions. When they are onlineTrading bulk commoditiesAt that time, investors do not need to contact brokers on the exchange to place orders. As a trader, everything you need can be obtained at any time in an accessible online trading account. You can useCommodity accountView all the charts you need and get all the analysis tools you need.

Unlike in the past,Online bulk commodity tradingAllowing investors to gain the upper hand, as they enjoy instant delivery or trading settlement. Investors do not need to hold paper certificates, so if they see a new opportunity, they can immediately upgrade their trading. Some strategies, such as reselling small price changes, become effortless.

Due to the wide variety of goods and inventory, diversification of investment portfolios is much easier.Online bulk commodity tradingOne secret is that most products have almost no relevance. You can expect the price to fluctuate in different directions with the trend of the stock. This can protect you from price shocks caused by pure stock investment portfolios. This makes it attractive to risk averse traders.

International commodity tradingThe high liquidity in the market provides speculators with an additional advantage as it attracts many trading opportunities. Current assets refer to assets that can be easily bought and sold without the need for long queues. Therefore, all futures contracts belong to the category of current assets.

4 types of commodity investment

1. Physical investment in goods

The most direct way to invest in commodities is through physical purchases. Gold is the oldestCommodity investmentForm. When you feel that physical objects are no longer useful, you can sell them at a good price. However, it brings many logistics challenges as you need to plan storage and secure delivery.

One of the tricks is to buy gold by searching for coin traders. Coin merchants have different sizes, qualities, and rarity of gold coins and bars to choose from. Most coins retain the year they were minted, and rare coins attract higher prices.

Due to its size, compared to most commodities, you can get many convenient coins. Similarly, gold coins are relatively easy to carry. However, some commodities, such as beef cattle, crude oil, and bags of corn, are bulky and inconvenient. Individual investors will find it difficult to transport most other physical commodities.

2. Futures contracts

Purchasing futures contracts requires investors to have funds. You can deposit margin requirements in your online brokerage account and trade when opportunities arise. The margin requirement is very low, so trading is more risky than stock trading.

3. Buying and selling commodity stocks

Investing in bulk commoditiesAn indirect but simple method is to purchase stocks of companies that mine these commodities. You can get from Glencore(Oil, natural gas, and coal)Or British and American gold(Gold and Platinum)Wait for the company to purchase energy or metal stocks. The prices of these companies' stocks do not directly fluctuate with commodity prices.

4. Invest in commodity exchange traded funds and diversified commodity mutual funds

Some investment funds offer commodity investments. If you don't want to hold these commodities, you can invest in themETFInvestment funds invest in commodities, stocks of commodities, or a mixture of both.

Good examples of these investment funds include those listed on the New York Stock ExchangeSPDRGold TrustETF ($GLD)Investors who want to go long on oil prices will want to invest in US oil funds (USO)。

Some funds also offer investment opportunities in a range of different commodities.iShares S&PProvided a commodity index trust, which is a fund benchmark that includes a diversified industry list24Different types of products.

Investment type	Investment products	Where to invest
Physical investment	gold coin	Physical traders and gold bar traders
Futures contract	Online brokers	Online brokers such as VYNTOR
Commodity stocks	Sinopec Corporation # SHI	Online brokers such as VYNTOR
ETFs/mutual funds	SPDR Gold Trust	Online brokers such as VYNTOR

What commodities does VYNTOR offer for trading?

precious metal

Crude Oil CFD

Commodity brokers

When you trade commodities at home, you don't have to deal with all the chaos of traditional on exchange trading. You can conduct transactions directly from your home computer or tablet. Its convenience and transparency make it possible to conduct transactions on the go.

In the past few years, brokerage firms have provided us with a lot of convenience. Brokerage companies are responsible for providing cutting-edge services to investorsCommodity trading platformTechnology and the right trading tools. The trading platform provides real-time analysis and technical education from one place.

However, you need to find a good oneTrading BrokerHe will provide you with the right tools at a reasonable commission. The most advanced platform and convenient access methods will ensure that you can make timely decisions so that you don't miss opportunities. As long as you have a diligent broker, you will receive regular communication of technological updates, which will enhance your trading experience. For example, you will receive an email introducing you to updates on the platform or adding new tools that you may be interested in.

A good oneCommodity trading companyIt will ensure that you receive the correct customer support from its platform, including real-time chat or social trading. Infrastructure also needs to have minimal lag or slippage.

Why trade commodities on the VYNTOR platform?

VYNTOR can provide highly competitive spreads.

Free trading tools can help you better analyze market conditions.

Trade on the world's most popular trading platform MT4.

Commodity trading platform

due tocommodity markets With so many stakeholders involved, there needs to be a unified place where they can all interact conveniently. Commodity trading is completed through software platforms, where all farmers, producers, investors, and analysts can communicate online in one place. yourCommodity brokersProvided a downloadableCommodity trading platformYou can conduct transactions in a transparent, secure, and controllable environment.

Traders must deal with licensed brokers to ensure that they invest in reliable and responsible entities. When evaluating a trading platform, some parameters you need to consider include:

1. Platform security

A state-of-the-art commodity trading platform should have the reputation of the financial institutions that provide it. In other words, if there are a large number of slippage points, security vulnerabilities, and vulnerabilities, this meansCommodity brokersNot trustworthy. In addition to obtaining licenses, brokers should also provide insurance for your investments on their platform. Platform security is extremely important because websites need to meet all security credentials, such as SSL authentication, to ensure that only you can access the platform at any time. It can keep away from URL intruders.

2. Convenient deposit and withdrawal options

Being able to deposit or withdraw your earnings for commoditiestrading platformIt's very important. It will help you make emergency trading decisions without any challenges due to delayed cash balances. You can also withdraw cash and make planned expenditures.

3. Training and teaching

Commodity trading is a high-risk type of transaction. Therefore, you need a platform that allows you to conduct transactions and provides you with timely basic and analytical information. In commodity trading, information and the speed of obtaining it can lead to significant financial differences.

Registered Account

Open your account

Fill out the real trading account application form, and once identity verification is completed, we will immediately create your account.

Inject funds into your account

Deposit funds with a credit card, electronic wallet, or bank transfer and start trading.

start trading

Trade on any device, including personal computers, Android, iPad, and iPhone, or through web platforms.

frequently asked questions

What is commodity trading?

Commodities can be divided into two parts, hard commodities (such as oil, gold, and rubber) and soft commodities (such as coffee, wheat, and corn). Hard goods are usually priced higher, but both arecommodity marketWidely traded. Commodities are traded on many different exchanges around the world.

In the UK, oil, natural gas, and other energy are traded in commodity investment centers. COMEX and non precious metals are traded on the London Metal Exchange (LME). VYNTOR allows our clients to enter lucrative markets and trade goods from the comfort of their homes.

How to invest in commodities?

1. Choose a trading platform

Firstly, choose a trustworthy and licensed oneCommodity brokersThe broker also allows for various types of commodity trading (please note that some brokers do not have commodity trading facilities yet). The best platforms offer a wider range of product categories and can be traded at low fees and with low minimum deposits. You can create one within 2 minutesCommodity trading platformAccount, such as VYNTOR.

Opening an online commodity account requires new investors to provide their name and other identification information. Then, they can set a strong password that they will use to log into their account every time they need to check. This should be enough to distinguish you from other members on the same trading platform.

2. Make the first deposit

Different brokers will offer different minimum deposits to start trading commodities. Some of them are as low as $10, but you need to have $500 or more to make your time worth it. Choosing not to charge a deposit for major currency paymentsCommodity trading platform。

You should also access various deposit options such as bank deposits, debit/credit card deposits, and other electronic solutions such as PayPal. Electronic deposit solutions or credit card deposits are a favorite among investors because they can immediately reflect balances without the need to mail checks to brokers. In many cases, you will find that the method you use to deposit money is also the method you use to withdraw money.

3. Study the commodity market

You may already be doing itSimulated trading of bulk commoditiesNow you can delve deeper into the researchcommodity markets And select some promising products. Study their respective markets and consider linking them to the fundamental issues that affect the behavior of each commodity. In this case, you should look at what affects the demand and supply of each commodity, and how their prices affect broader economic indicators.

As most trading programs also require psychological calmness, studying the market will give you more confidence when trading. This indicates that your investment was carefully considered, rather than a decision based on conditioned reflexes. Spending 30 minutes planning and executing your trades saves you more money than correcting trades that are detrimental to your funds.

4. Select the first transaction

After you find the commodity you want to trade, you can choose the appropriate price to enter the trading. Identify accurate stock codes to view charts and their corresponding prices. It should meet your technical and basic expectations. Some technical expectations include the historical reaction of prices when they reach a certain level. For example, you can check whether the price of a product is trading at a historical low or high.

When trading at historical lows, people tend to buy more commodities because they want to bet that prices will rise over time. Buying low and selling high always makes financial sense. Investors who engage in large-scale trading and wait for a long time can reap huge returns, as reversals often occur when prices reach historical lows or highs.

5. Execute the first transaction

To execute the first transaction, once you have the correct entry criteria, select the amount you want to trade and invest in a specific commodity. Open a transaction, select the appropriate transaction size, and then place an order.

Once you place an order, you must monitor whether it is beneficial to you. One technique used by experienced investors is to first set a specific investment amount in their mind. Next, they will put a fixed percentage of the total amount into interval trades until their budgeted amount is secured.

For example, if you want to invest $100 in a specific position, you can start with a $20 trade and then increase it by $100 as the trade moves towards your predicted trend.

Where can I trade bulk commodities?

Finding a place to buy stocks or currency may be a walk in the park, but it's not the case for commodities. Most brokers do not support conducting transactions on their platformsCommodity tradingTherefore, you need to explore online brokers and find which ones support commodity trading on their platforms.

Even so, it's better to find which oneCommodity brokerage companiesProvide the trading position of the commodity you want to trade. These transactions will also appear in different forms, such as futures or options. ETFs are a great way to trade commodities through brokers.

Evaluate available platforms and consider the fees charged whenever you want to start your journey as a commodity trader on an online platform. Cost is important because you don't want to settle on a platform that would cut most of your profits to pay for fees and commissions. Your trading experience should be fair to both you and your broker.

When you trade on the VYNTOR platform, you will enjoy the right charting tools and technical indicators to help you choose possible trades. Technical indicators and charts allow traders to identify historical highs or lows in commodity trading and identify potential cyclical trends. Investors who have no previous experience in financial instrument trading can also download training tools and manuals, enabling them to simplify trading and participate in thousands of opportunities that arise every trading week.

Another important decision you must make when choosing where to conduct commodity trading is the convenience of deposits and withdrawals. Using an online broker is faster, safer, and more confidential than physically delivering checks or cash to trade goods face-to-face with strangers. When you choose onlineCommodity trading platformSimply deposit the cash electronically into the account you manage. You can access your commodity account and monitor your balance at any time without being affected by logistical barriers such as service hours.

When choosing online commodity trading, you are welcome to research and review the services provided by the platform, and consider evaluations as much as possible. A good review can help you summarize your trading experience.

What is a commodity broker?

Since you already know where to trade commodities when preparing to invest, you also need to know who you will be using to trade in the commodity market. If you agree to pay a small commission,brokerWe will provide you with all the conveniences needed to sign the contract. Once you open an account with a commodity brokerage company, you will be included in the trader list. Then, you will be able to trade commodities as a commodity trader in the form of futures, options, or ETFs.

For your useCommodity trading platformAll services obtained at the time will be compensated by the commodity broker with commission as input. Commission is a fixed percentage of all trades you make, from opening a position to exiting the trade. Brokers provide you with a safe and convenient environment for smooth trading of currencies and financial instruments. Therefore, they provide you with the best service and charge a small fee from the orders you choose to execute using their trading facilities.

As a requirement, a good commodity trading institution will follow all prescribed licensing procedures and meet all security requirements to protect your funds. Avoid unregulated brokers so that you don't get into a dangerous situation that puts your capital at risk.

All through one websiteCommodity investment, allowing you to easily deposit funds and withdraw any returns when needed. For the security of your broker, ensure that the website has the latest security standards to prevent intruders from accessing your private information. Confirm if your broker has an SSL certificate (Secure Socket Layer) on their website to prevent intruders. This will display the certificate in the website footnote, or you can also view it from the website URL. The website URL will have a 'lock' icon to indicate that it has the latest SSL updates and protection against domain cloning.