How to use Cryptocurrency to invest in Commodity markets on PrimeXBT? Table of Contents
Invest in Commodity markets with Crypto
With PrimeXBT, you can buy, sell and trade a variety of CFDs on different commodities, including oil, gold, natural gas, and much more.
Become part of the global commodity market quickly and easily.
Trade the most popular products such as natural gas, crude oil, gold, silver, and access some of the largest and best-established markets in the world.
Avoid having to physically handle and store merchandise, and benefit from the digital nature of trading with merchandise CFDs.
Develop professional commodity trading strategies with PrimeXBT’s customizable charting software that provides a wide range of technical indicators.
Trade short and long, hedge your positions with PrimeXBT’s award-winning platform, and benefit from instant order execution using PrimeXBT’s powerful trading engine.
Invest in Commodity Markets on PrimeXBT
Commodities available for trading on PrimeXBT
Commodities are defined as economic goods; a product of agriculture or mining, an article of commerce, or some other useful item of value.
Common types of commodities of interest to daily traders include natural gas, Brent oil, WTI crude oil, gold, silver, corn, soybeans, and much more.
Because there are so many different types of commodities, they are generally grouped into three main categories: agricultural, such as food-based products, livestock, materials, and more; energy, such as natural gas, oil, and more; and precious metals, including platinum, palladium, gold, and silver.
- Gold
- Gold is one of the oldest commodities and is prized for its low volatility and its safe-haven status that enables investment in a crisis.
- BRENT (UK Brent)
- Brent is another oil market related to oil from the North Sea and Europe.
- CRUDE (US Crude)
- Oil is a highly valued product in the industrialized world and its market is competitive and highly regulated. WTI is West Texas Intermediate Oil and comes from the United States.
- NAT.GAS (US Natural Gas)
- Natural gas is an important product used in homes around the world for heating and cooking, and it is a major commercial market globally. It can also be used to generate electricity.
Any of these assets can be traded as their values increase and grow.
In general, all markets and any price fluctuations within assets are a function of natural supply and demand.
Higher supplies generally lead to lower prices, while low supplies can cause a sudden spike in demand and therefore price increases may follow.
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Why should you consider commodity trading?
Commodity trading can now be done completely digitally through PrimeXBT and its CFDs, instead of physically trading commodities such as natural gas, oil, or gold.
This allows traders to gain exposure to a particular commodity market without physically handling gold bars, barrels of oil, etc.
Traditionally, the futures market has been the most direct way to trade products.
Futures contracts are agreements to buy or sell a product at a predetermined price and at a specific time in the future, and generally require a higher allocation of capital compared to CFDs offered on PrimeXBT.
- Quick access to commodity markets
- PrimeXBT offers traders a faster and more efficient way to access the commodity market and speculate on price movements, rather than owning them.
- Multiple earning opportunities
- Commodity CFD positions can be traded long and short, allowing traders to increase their capital regardless of how the market moves.
- Easy for professionals and beginners
- PrimeXBT offers easy-to-use yet powerful trading tools that include built-in chart widgets, multi-monitor functionality, and a customizable trading interface. This is beneficial for professionals and beginners alike.
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Why trade commodities with PrimeXBT?
- Exciting opportunities
- Be a part of some of the biggest and most popular online marketplaces with PrimeXBT. Get started with gold, oil and natural gas in less than a minute!
- The best trading platform
- Trade directly from charts, enjoy multiple types of orders, and enjoy the highest level of security. PrimeXBT offers award-winning trading software that has been recognized by traders around the world.
- Low trading commissions
- Benefit from low commissions and tight spreads, which are important to both professional and beginner traders.
The market for raw materials is wide and varied.
Commodities range from gold and silver to oil and gas and agricultural products like corn and soybeans.
How to open PrimeXBT Crypto Trading Account?
How Does Commodity Margin Trading Work?
Commodity CFDs allow you to trade on margin.
This means that you only need to deposit a small percentage of the total value of a position.
In other words, you have the ability to allocate significantly less capital when trading products on margin.
Additionally, commodity CFDs offer a way to potentially profit from rising and falling markets by opening long or short positions.
The benefits of trading commodities with leverage are:
- Magnified earnings
- Leveraged margin trading allows you to receive higher profits if the position goes in the right direction. However, there is a risk that if trading is unsuccessful, losses may also increase.
- Portfolio diversification
- Thanks to leverage, traders are not required to lock in too much capital in a trade. This allows them to have more free capital to use in other trades.
- Profit from market downturn
- With leverage, traders can benefit from the market downturn by opening a short position, which means that they intend to sell at a high price and buy back at a low price.
Use your Crypto to trade Commodities on PrimeXBT
Start trading Commodity CFDs in just 3 steps
- Open PrimeXBT Real Account
Open a new account on PrimeXBT in less than a minute. All you need to do is register an email to get started. - Deposit your account
Deposit funds in your personal wallet. Once your account is funded, you are ready to trade! - Start trading
Get full access to PrimeXBT’s award-winning trading software. Benefit from low commissions and advanced trading features.
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What factors affect the price of Commodities?
Commodity market prices can also be driven by technical factors, such as moving averages, market structure, chart trading patterns, and the ebb and flow of traders’ emotions within the market.
The price of raw materials can also be affected by political and macroeconomic factors, and in the case of some agricultural products, even the weather can play a factor to counteract the delicate balance between supply and demand, causing values to fluctuate wildly.
These fluctuations become opportunities for traders to make a profit and grow their capital.
Commodities can be a great investment with the pandemic causing supply constraints around the world.
Commodities are driven by supply and demand, so prices could theoretically increase in the short term.
Investing in commodities often requires storage fees or costs associated with owning the asset.
For example, having a physical gold bar does not always make sense for an investor’s situation.
In contrast, when trading, investors do not need to own the asset itself, to negotiate the price of commodities.
Open PrimeXBT Account to invest in Commodities
Please check PrimeXBT official website or contact the customer support with regard to the latest information and more accurate details.
PrimeXBT official website is here.
Please click "Introduction of PrimeXBT", if you want to know the details and the company information of PrimeXBT.
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...