Commodities are defined as something of value that is
traded on a large scale. They include anything from
heating oil and natural gas to soybeans and orange
juice. Every industry uses commodities to provide a
product or service; when demand for an industry
increases, demand for its commodities increases as well.
Trading commodities provides you with a great way to
diversify your portfolio and hedge your investments.
UFXMarkets offers you a diverse menu of commodities.
Select from corn, sugar, cotton, and coffee in the agricultural
sector, and Gold and Silver in metals. We also offer you
the chance to trade oil and gas in the energy markets.
Each of these areas reacts differently to market conditions:
The metals are offered considered safe-haven assets and therefore the price of Gold may rise when many currencies are dropping. Energy is very connected to business and industry conditions, whereas foods like coffee can depend on anything from consumer spending to weather and politics in the places where they grow.
The trading hours for commodities are somewhat different than for currencies, but they are still very long, allowing trading at almost any time. Gold (XAU/USD) and Silver’s (XAG/USD) Trading Hours: Trading in Gold and Silver begins on Sundays at 23:00 GMT. There is a break in Silver and Gold trading online every day at 22:00 GMT and trading resumes at 23:00 GMT. During this daily break in trading, you will not be able to place or amend market orders, Stop orders and Limit orders.
Oil (OIL/USD) Trading Hours: Trading in Oil begins on Sundays at 23:00 GMT. There is a break in trading Oil every day at 22:15 GMT and trading resumes again at 23:00 GMT. During this daily break in trading, you will not be able to place or amend market orders, Stop orders and Limit orders.
"On December 4, 2009, Gold opened at $1207.40. I saw it trading around this level for the early part of the day, but then the price started dropping and began to tumble after the Payrolls came out.
I sold 100 ounces at $1205.65, set my stop loss to $1215, set my take profit at $1185 and walked away from my computer. Gold fell to $1,165 in this whopper of a day and my total earnings were $4,065 USD. Hey, not bad for a day’s work!"
M. Harris Sydney, NSW (Australia)