What is a Commodity?
All commodities subject to trade are called commodities. When it comes to commodities, precious metals such as Gold, Silver, Platinum, Copper etc., wheat, cotton, cocoa, corn etc. Energy sources such as agricultural products (agricultural commodities), oil and natural gas are understood.
What is a Commodity Exchange (Market)?
Commodity Market, the market where commodity products are traded is called commodity market or commodity exchange.
The Chicago Mercantile Exchange (CBOT) is the world’s largest commodity exchange where commodity futures change hands. Commodity exchanges in our country Turkey Chambers and Commodity Exchanges continues its transaction depending on the Union.
Commodity exchange; It is divided into soft commodity and hard commodity. Soft commodity; It is used for grown products such as coffee, cocoa, fruit, sugar, wheat, and corn. Soft commodities are preferred by investors who want to be protected from possible price volatility. Soft commodities may be more exposed to market fluctuations when uncontrollable developments such as weather conditions and seasonal changes are in question. Gold, petroleum chemicals and metals are classified as hard commodities.
There are 4 categories that can be invested in the Commodity Exchange:
– Precious Metals: There are products such as gold, silver, platinum and palladium.
– Industrial Metals: Copper, steel, aluminum, iron, nickel are products with the highest processing volume.
– Agricultural Products: Products with high transaction volumes in global markets such as wheat, corn, cotton, soybean, cocoa, coffee, sugar, milk, live cattle, palm oil, rice and cardamom are included in this group.
– Energy Products: Instruments such as crude oil, brent petroleum, natural gas, heating fuel and gasoline constitute this group.
What Are the Factors Determining Commodity Prices?
Commodity prices fluctuate depending on the political, economic or seasonal / periodical supply-demand balances. Therefore, it also allows speculative transactions.
How to Invest in Gold, Silver, Oil, Copper with Atlantik Forex?
Investors trading at Atlantik Forex have the privilege of investing in gold, silver, brent oil, crude oil, copper commodities with the advantage of low spreads. If you want to make a profit by investing in the commodity exchange, open a demo account before opening a real account and You can test it with.