Commodities Trading

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There are certain aspects of financial trading in general and commodities trading in particular which should always be kept in mind by those taking a position in the financial markets. Amongst these are the following;


‘Sure Things’ Do Not Exist


‘Sure Things’ Do Not Exist

‘Sure Things’ Do Not Exist

There’s no such thing as a ‘sure thing’. Even in the traditionally less volatile commodity markets, ‘trading certainties’ are myths. Any traders, for example, who predicted in March 2014 that Brent Crude Oil Prices were going nowhere but up probably ended up sadder but wiser traders in March 2015. Similarly, despite a number of OPEC (Organisation of the Petroleum Exporting Countries) officials publicly ruling out oil prices ever reaching the $100 per barrel mark again, it would be unwise for traders to completely discount the prospect of such a thing happening.

Commodity Markets: Equity Markets


Commodity Markets: Equity Markets

Commodity Markets: Equity Markets

As a commodities trader, it can be worth considering the potential that commodity prices have to affect other markets. Many businesses are based around the harvesting or subsequent use of commodities, and any commodities trader who is quick off the mark may find that they are uniquely well-positioned to take advantage of movements in certain equities.​

Once again oil, as a commodity which has experienced significant change in a recent period, will be the subject of our example;

During the period of late 2014 to early 2015, many energy companies saw their share prices decline due to oil’s slump. However, many Airlines saw profit increases, since fuel prices – a major expense for any airline – fell significantly. Commodities traders in this instance may have been the first to feel the effects of falling oil prices, but as the first to be on the receiving end of oils’ fall, commodity traders could potentially then have been amongst the first to use that to their advantage by taking positions in equities which stood to benefit from the decline in oil prices.

Key Commodity Exchanges and Commodity Regulators


Key Commodity Exchanges and Commodity Regulators

Key Commodity Exchanges and Commodity Regulators

So, where exactly are the key centres for commodity trading, and who regulates the trading process?

There are a number of international commodity exchanges, where large volumes of raw materials are traded on a frequent basis. The largest such exchange is the Chicago Mercantile Exchange & Chicago Board of Trade, also known as the CME Group (which also owns a range of financial indices) but there are also large commodity exchanges in Japan, China and India. A variety of different regulatory bodies also exist to specifically police commodities trading. In the US the foremost example is the Commodities Futures Trading Commission (CFTC), in mainland Europe the European Securities and Markets Authority (ESMA) is the prime regulator whilst in the UK commodities trading regulation would fall under the purview of the Financial Conduct Authority (FCA).

​COMMODITIES TRADING WITH ETX Capital

​COMMODITIES TRADING WITH ETX Capital

​COMMODITIES TRADING WITH ETX Capital

  • Select Your Trading Format - When it comes to Commodities Trading, ETX Capital offers its clients a choice on many products; between ‘rolling daily’ and ‘futures’ formats.
  • Large Range of Choice - From Cocoa, Copper and Crude Oil to Silver, Sugar and Soybeans, ETX Capital offers a comprehensive range of commodities trading opportunities.
  • Available on Three Different Platforms - ETX Capital offers commodity trading on every platform it operates; clients can trade Commodities via the ETX TraderPro, ETX MT4 or ETX Binary platforms.

AWARD WINNING

  • moneywise

    Money AM Awards 2012 Best Online Charts

  • investments

    Investment ​Trends Award 2013 Best Value for Money

  • ukforex

    UK ​Forex ​Award 2013 Best Forex Trading Tool & Software

Current SPREADS & PRICES

All market data displayed has been derived by Monecor and is not in its original raw form.


Why us

Financial Conduct Authority

Authorised and Regulated

ETX Capital is authorised and regulated by the Financial Conduct Authority: Financial Services Number 124721.

Choice

Choice

There are thousands of products available to trade, including indices, commodities, stocks and forex pairs.

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Mobility

Take our platforms with you wherever you go: all three are available on mobile and tablet devices on both iOS and Android.

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