Why should a trader choose to trade commodities CFDs?
Commodities like gold, oil and natural gas are raw materials that are bought and sold. With CFDs, you can trade commodities without actually owning them. Here are some benefits of trading commodity CFDs:
Adding commodities to your portfolio helps diversify from just stocks and bonds. Their prices often move differently providing a hedge against risk.
You can trade CFDs on many commodities with less upfront capital than buying the commodity itself. The low barriers make commodity CFDs accessible.
Go Long or Short
Profit from both rising and falling commodity prices by going long or short. This flexibility allows you to fully capitalize on any market condition.
CFD leverage lets you control larger positions with less money. Leverage amplifies your gains but also increases risk if prices move against you.
Trading commodity CFDs often comes with lower broker fees and commissions than directly investing in commodities. Lower transaction costs benefit traders.
Charting & Analysis
Commodity CFDs help hedge against inflation eating away at cash savings. Short positions also offset losses in commodity related stocks.
No Futures Rollovers
Unlike futures, commodity CFDs have no expiration dates so you don’t deal with rolling contracts. No rollovers reduces hassles.
Many CFD brokers offer practice demos with virtual funds. Test different commodities and strategies risk-free before using real capital.
In summary, the diversification, accessibility, leverage, lower costs, advanced analytics, 24/7 trading, and risk hedging make commodities CFDs appealing for active traders. Give commodity CFDs a try with a risk-free demo!