Commodities trading refers to the purchase and sale of basic products and raw materials such as oil, gold, silver, wheat, coffee, among others, with the aim of obtaining profits. This raw material market can be operated through different financial instruments.
Commodities trading is based on speculation about the future price of a basic product or raw material. Investors can bet on the increase or decrease in the price of a particular raw material, and take long or short positions accordingly. However, it is important to keep in mind that commodities trading entails a high level of risk due to the volatility of raw material prices.
Commodities trading, ways to invest
Investing in raw materials or commodities trading is different from other types of investments, as physical goods are commonly a greater challenge. There are four ways to invest in these raw materials:
- Direct investment in the product.
- Invest using CFD of raw materials or futures contracts.
- Buy actions of negotiated funds in specialized bags in raw materials.
- Buy shares of a company that produces these raw materials.
How profitable is the trading of commodities?
Commodities trading can be profitable if done correctly and with a well -planned strategy. But this does not mean that it has no risk, since like other investments it also entails a high level of risk. This due to the volatility of raw material prices.
In addition, there are many external factors that can affect the prices of raw materials, such as climatic conditions, government policies and global economic fluctuations. Therefore, it is always important to stay informed and properly understand these factors before investing in commodities trading.
3 raw materials in which to invest
Each raw material has its own set of factors that influence its price. So when choosing in which raw materials invest, it is important to consider your own risk profile and make an exhaustive investigation before making a decision. Then I will be a name 3 of the most profitable raw materials to invest:
Oro
Gold is one of the safest assets, since it keeps great value over time. This is considered an unbeatable asset in times of crisis or uncertainty, since it generates a positive long -term return. In addition, it is one of the investments in less volatile raw materials.
Oil
This raw material has always been one of the most popular when investing, even for private investors. But you must take into account that the producing countries and political events affect it, so you must remain informed.
Plata
Silver, also considered a precious metal, stands out for being a raw material with greater movement than gold, and usually retains its value or increases it. Therefore, it provides greater protection against inflation.