Commodities have been traded since human civilization began. Unlike many other financial instruments, commodities represent actual physical things. That can be foodstuffs such as wheat, energy sources such as oil or precious metals like gold. Because they are real-world physical things, they are also impacted by world events.
Take oil as an example. When oil-producing countries pump an excess of oil and there is too much available on world markets, then the price usually falls. Some commodities are what are called “safe haven” investments that can stabilize an asset portfolio and protect against more volatile instruments. One popular example is gold, which does have a relationship with currency markets and values. Gold futures are attractive to Forex traders in times of excessive currency market volatility.
Commodities are traded on Metadoro only as CFDs, meaning you don’t need to purchase the underlying asset to trade them. In addition, CFDs enable you to open “sell” (go short) positions, leveraged trades, and fractional ownership – even for assets that don’t offer the option in traditional trading. For example, on Metadoro, you can invest as little as $100 in gold, even if a single unit of gold costs $1,000.
You can trade commodities as CFDs on the Metadoro platform. That means you don’t have to buy a barrel of crude oil to trade the oil market. You simply invest in the price and in predicting its movement up or down. You can also “go short” about a commodity selling it if you think the price will fall. Leveraging enables you to control a much greater volume of the underlying asset than your capital might suggest. For example, even if a unit of oil costs $1,000 you could invest a much smaller amount to control that unit on Metadoro.