| Updated: October 30, 2024You will learn about the following concepts
- Introduction to commodities trading
- Types of commodities: agricultural, energy, metals
- Trading gold, silver and crude oil
Introduction
Trading commodities is quite popular among binary traders, because it gives them the chance to trade with a wide range of commodities which can be categorized in 4 categories:
- Agricultural (soybeans, wheat, cocoa, coffee, sugar, coffee, rice, etc.)
- Energy (crude oil, natural gas, gasoline, etc.)
- Metals (silver, platinum, gold, etc.)
- Livestock & Meat (lean hogs, live cattle, pork bellies, etc.)
Of course, there are many other types of commodities that are available on the markets. It is up to every trader to decide which commodities will best fit their trading strategy or style – for example, some commodities are a better choice for traders who rely on call/put options, while other commodities are a more reasonable choice for touch/no touch options.
Commodities in Details
One of the main reasons why so many binary traders are attracted to commodities is the fact that there is plenty of information about these types of assets on the web. You can quickly find detailed technical analysis reports, as well as the latest news regarding specific commodities. However, these assets can cause you a lot of trouble as well. One of the major setbacks of trading commodities is the fact that these assets are often affected by factors which are impossible to predict. The value of these assets may quickly decline or increase in case of unexpected events such as bad weather conditions, natural disasters, epidemics and even man-made mistakes.
If you are familiar with basic economic principles, then you probably know that they apply for commodity markets as well. If for any reason a commodity’s supply declines, then it is almost certain that its price will drastically increase. It is true that investors often wait for epidemics or major natural disasters that make market prices more volatile – if you wait for the right moment, these events can work in your favor, but they can also cost you a lot of money if they occur unexpectedly.
What We Will Talk About
In our tutorial we shall cover the following commodities – Gold, Silver and Crude Oil. You will receive valuable information about each one of these assets, as well as tips on how to be more precise in your predictions, that concern one of these commodities. You will also learn about the factors, which have the biggest impact on the value of Gold, Silver and Crude Oil, as well as how to predict sudden market changes.