The value of commodities to a trader is that they have little connection with the ups and downs of currencies and the stock market, helping create a diverse and stable investment portfolio. Modern investment offers a variety of easy ways to take part in commodities trading—the most common of these is derivative trading. It lets you take a position on a commodity’s price without actually owning the asset.
Сommodities are tradeable physical assets such as metals, including gold, silver, platinum, and copper as well as crude oil, natural gas, and other resources.
Advantages of derivative trading:
• The ability to profit from not just strong markets but from falling ones as well.
• The opportunity to speculate within a wide range of markets from just one platform.
• Margin trading lets you create a diverse investment portfolio rather than locking up all your capital within a single transaction.