Skip to main content

Trade Commodities

Thanks to CFDs it’s easy to take a position within the different commodities that are listed on the financial markets . no matter the asset, you’ll be ready to take an upward or downward position on all commodities present on the stock exchange .Trade Commodities.

CFD trading is undoubtedly the simplest because of be ready to invest in these financial products thanks to its simplicity and therefore the possibility of trading different commodities from one platform.

If you’ve got never heard of CFDs, you’ll read our complete guide which explains how CFDs work but also the benefits of those new products available to all or any investors.

Trade Commodities with South African platforms

Forex Brokers Minimum Deposit Support Rating Visit Site
1
Easy Markets south Africa
R 1800
98.05%
Start Trading
Highly Recommended CFD Site South Africa!
2
XM Forex South Africa
R 1500
98.21%
Start Trading
Best South African CFD Brokers
3
hycm markets South Africa
R 1600
98.05%
Start Trading
One of the Best CFD Trading in South Africa
4
Avatrade South Africa
R 1200
98.11%
Start Trading
Most Popular South Africa CFD Trading Site

The advantages of trading Commodities via CFDs

The CFD system is comparatively simple , to take a position during a commodity you only got to buy a CFD contract up or down. you’ll then resell it whenever you would like . There are many advantages to using CFDs to trade commodities:

  • Invest on the upside also as on the downside.
  • No deadline to sell your contracts.
  • No commissions.
  • 24 hour commodity quotation.
  • Invest with a minimal budget because of the leverage effect.
  • Take your Gains / Losses immediately and at any time.
  • The different raw materials available
  • There are tons of commodities that are listed on the stock market , the investment choice is wide , here is that the list:
  • Energies
  • Oil (Brent and Crude)
  • Domestic Fuel
  • Natural gas
  • Unleaded petrol
  • Diesel
  • Metals
  • Gold
  • Money
  • Aluminum
  • Copper
  • Iron-ore
  • Lead
  • Nickel
  • Zinc
  • Platinum
  • Palladium
  • Agricultural
  • Cocoa
  • Coffee
  • Cotton
  • But
  • Livestock
  • Lumber
  • Rapeseed
  • Orange juice
  • Rice
  • Oats
  • Soy
  • Sugar
  • Corn

As you’ll see, there are tons of commodities that are listed on the stock market .

Example of Trade Commodities

On this instance we offer you an example of trading on a commodity with CFDs, the instance is valid for all the materials that we’ve listed above.

You want to require an edge during a commodity with the expectation that the worth will rise.

You buy 1 CFD at 1 € , each point of increase or decrease is like 1 € (one point of increase = 1 € of the course).

You buy this contract when the worth is € 400 .

Remember that you simply can keep your CFDs as long as you would like , there’s no expiration date, unlike other derivative products like warrants, turbos etc.

Several hours pass and therefore the price of the asset is found at 450 € , you would like to sell your CFD contract. You therefore earn 50 € (1 Euro CFD x 50) .

This calculation is straightforward , to arrive from € 400 to € 450 there’s a difference of € 50, i.e. 50 x € 1 (Your contract).

If, on the opposite hand, the worth of the asset has fallen and is found at € 350 for instance , you purchased at € 400 so you’ll lose € 50 or 50 x € 1 by selling your position.