Having a variety of commodities in your trading portfolio can be a great addition and can potentially increase returns. Commodities do not pay dividends, at the same time they do not go bankrupt. Low startup costs, all you need is your computer and a small capital.
Supply and Demand
If supply and demand balance out, prices should stay the same. However, anytime the market thinks the supply will be lower due to weather or production cuts, prices tend to go higher, and vice versa; higher supplies tent to lead to lower prices.
Connections between some of the worlds most traded commodities and currency pairs are common. For example, the Canadian dollar (CAD) is connected to oil prices since Canada is a large exporter of oil. If you are aware of these common connections, then monitoring them and trading at the right time are important to making the right decisions in successful trading. It should be noted that most commodities are priced in US dollars.
Accessible trading tools
We want our offering to be one of the best and that’s why we provide our account holders with a set of free research tools for better-informed trading decisions. Make the most of your investing strategy with Raw Forex. If you want to try it out first without risking your own money, you can learn how to trade on a Demo account.