Commodities used to be exclusively for financial traders with large amounts of available capital and were mainly traded by big financial institutions. The truth is that commodities offer some great trading opportunities and lots of these traders became very successful by trading very simple strategies. For smaller traders it was difficult to trade commodities until spread betting arrived with derivative commodity markets tracking the real value of the exact markets used by the large traders. As soon as home-based traders began to know where to trade commodities easily and inexpensively online, it became hugely popular and many began to make large profits from the great opportunities that it offered.
Why trade commodities?
Commodities’ trading offers really very straightforward and highly rewarding opportunities and trade set-ups. Most spread betting companies offer a good range of these, including markets for building commodities such as copper and steel to soft commodities such as wheat and grain. The most popular commodities markets are also some of the most influential and are inextricably linked to the global economy. Precious metals such as gold and silver, as well as energy markets for oil and gas are very popular markets and present hundreds of great trading opportunities each and every day. The question of where to trade commodities is answered by the many spread betting brokers offering low spreads and low-cost access to speculating on commodity price movements.
How to trade commodities successfully
Commodities can be traded profitably in a number of ways. Perhaps the most popular and straightforward way for short-term traders to trade them is to use technical analysis. In deciding where to trade commodities, a trader should look for a spread betting broker with a good charting package which will allow them to analyze the markets. Technical analysis is a very reliable way to spot patterns and profitable trading opportunities. Another method is for long-term traders to look for fundamental changes in order to speculate on price moving higher or lower.