Trade Soft Commodities at ePlanet Brokers
Commodity trading in the financial markets involves the buying and selling of contracts for various raw materials like gold, oil, and agricultural products such as wheat and coffee. These commodities are categorized into two main groups: hard commodities, comprising metals and energy, and soft commodities such as agricultural products.
Commodity traders speculate on the potential price fluctuations and the commodities are bought or sold based on factors such as supply and demand dynamics, geopolitical events, and economic indicators. Many experienced investors incorporate commodities into their portfolios as a strategic move for diversification, as their price movements tend to oppose those of stocks. They frequently turn to commodities as a hedge against market instability, seeking to balance their portfolios during uncertain times.
