Commodities & Goods

Commodities are a significant part of day trading - Commodities and goods trading explained.

Goods and raw materials such as petroleum products, natural gas, precious and base metals, are some of the most popular trading assets. Called commodities, they act as a separate asset class, and are relatively volatile financial instruments.

That is why, the cost varies greatly from hour to hour, from day to day. However, the volatility can become an advantage that could help the trader generate a considerable profit.

Historical volatility of most commodities, are close to the 30% mark. This means that within a year, the price of a basic commodity instrument can be changed to 30%.

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Published at: 2024-11-07

Trading terms

Forex - foreign exchange market, where buyers and sellers conduct foreign exchange transactions.

Broker - an organization that provides lending and support traders.

Bulls - traders who count on the rise in the exchange rate.

Bull market - a market with a tendency to appreciate in value.

Exchange rates - is of two kinds:

Direct quotation - the number of currency units per U.S. $ 1 (U.S. is ahead of the currency pair).

reciprocal rate - the number of units of currency per 1 euro, British pound and Swiss franc (Euro, British pound and Swiss franc currency pair is ahead).

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Published at: 2024-11-07