Commodities are defined as materials that were consumed, like livestock and corn, oil, coffee and orange juice. Most commodities are traded on the futures markets and require large capital and market knowledge as you need to decide a date in the future that the assets will climb or fall. Trading commodity based CFDs have simplified the process and opened these assets to many traders.
Trading fundamental commodities will prevail as a longer-term investment. Global population grown is the main driver of commodity prices, and people will always want and need food and energy. These commodities have become essential elements of manufacturing for domestic and industrial consumption – vital parts of modern living! The complex interplay of factors of supply and demand of these physical commodities create ongoing fluctuations in price, providing opportunities for traders to capitalise on.