Commodities Trading
Brief History - Gold and Silver Trading
Gold and Silver have captured the interests of generations across the world for thousands of years .From a symbol of power, wealth and status these two metals have become a prime commodities that hold their value during hard times.
Over the last decade, electronic trading has allowed easier trading of these two commodities. We no longer have to physically buy an ounce of gold or silver, when we can just buy a spot contract.
Due to the economic situation and increase in demand, our traders can now trade Gold and Silver, through our revolutionized trading platform.
Brief History - Oil Trading
Crude Oil has always been a "hot" commodity due to its global demand. From developed countries to developing ones, crude oil has become one of the most popular traded commodities over the last few years, due to its increasing demand and high volume market
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Even though oil has had its ups and downs throughout the years, reaching extremes of $145 (during 2007) and $35 per barrel (during 2008), demand continues to remain at high as developing countries like China and India are now substituting the U.S's slow demand, caused by the recent economic slowdown.
The extreme movement on this commodity over the last year has presented commodity traders with numerous profitable trends. Due to electronic trading, a trader no longer has to physically buy a barrel of oil to profit from the trend. Nowadays traders can simply buy or sell oil spot contracts.
Due to the increase in demand, our traders can now trade Crude Oil, through our revolutionized trading platform.
Now you too can grab intraday trends on Gold, Silver and Oil 24 hours a day.
Similar to Forex pairs, Gold. Silver and Crude oil positions can be easily opened through our unique platform. By adding this popular commodities to your trading portfolio, you can easily improve your portfolio by diversifying your trades.
Benefits of Commodity Trading
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Commodity - free trading (pay only the spread)
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Low margin requirements
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Gold, Silver and Oil are classed as a safe-haven when stock markets drop - eToro allows you to diversify your portfolio.
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Small contract sizes available.
Where to start?
To help you navigate between the different securities we have added an extra tab on the top of the ‘Expert Mode' and ‘Trade box' that allows you to view the quotes of the three commodities.
Opening a position is as simple as opening a position on any currency pairs:
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Choose the commodity you wish to trade (Gold, Silver or Oil)
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Select the type of trade you would like to execute:
Would you like to buy or sell the Commodity?
Click on the "Buy" or "Sell" Button according to your choice.
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Select the amount of Units by determining your Risk Level and Amount
Example for a Gold trade
If the price of Gold is trading at $1000 per ounce and you determine the following:
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Risk Level = x10
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Amount = $500
Your buying power is $5,000 ($500 x 10).
This means that you can purchase 5 contracts of Gold at a price of $910 per contract.
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All that is left is to set your stop loss and Take profit and then to click on "Open Trade"
Example for a Oil trade
If the price of Oil is trading at $45 per barrel and you determine the following:
a)
Risk Level = x10
b)
Amount = $25
Your buying power is $250
($25 x 10).
This means that you can purchase 5 contracts of Oil at a price of $45 per contract.
Viewing Your Position
Similar to your Forex positions all open trades can be monitored at in the "open trades" section of the platform
You can easily change your Stop Loss or Take Profit once your trade is open
To close your position click on the "close" button located beside your open trade.
