What are Commodities?

The commodities are usually naturally-occurring or agriculturally grown material that can be bought and sold, or traded. As commodities of the same type and of the same grade do not really differ much between different producers, this makes them interchangeable and priced quite similarly or equally.

Commodities are sorted into 4 categories: agricultural, energy, livestock and metal. Some commodities possess an intrinsic value because they are scare or difficult to mine (or both), including precious metals like: Gold, Platinum and Silver.

Example of some different commodities by category:

  • Agricultural: Sugar, honey, coffee beans, corn, wheat, maple syrup etc.
  • Energy: Petrol products like oil and gas.
  • Metal: Gold, platinum, copper, silver.
  • Livestock: Pork bellies, live cattle as well as other meat commodities.

Two other terms that you might come across while trading in commodities are the terms Hard and Soft commodities. Hard commodities mainly include commodities that have been mined (i.e.: petrol, gold, oil). Soft commodities are animal or agricultural (i.e.: live cattle, wheat, coffee beans).

There is a plethora of different factors that can affect the price of any commodity. Anything from the weather and war, to changes in the U.S. dollar can affect the prices. One of the most influential factors, if not the most influential factor is when there are changes in the supply and the demand of a specific factor. For example: Gold is currently an asset with a high price on it. This is due at the moment to the demand for gold and the difficulty of extracting it, along with the scarcity of the metal.

If we lived in a world where gold rained from the sky, the price of this commodity would be drastically lower, as the supply would rise there for lowering the demand.

AgeFX allows you to speculate on the prices of commodities using CFDs and allows traders to take part in trading in the futures markets with derivatives without owning the actual asset. See what commodities you want to trade CFDs on.

Company Information: This website (www.agefx.io) is operated by FP Asset Management Cyprus Ltd, a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission with CIF license number 317/17. FP Asset Management Cyprus Ltd is registered at Limassol, Cyprus.

 

FP Asset Management Cyprus Ltd owns and operates the “AgeFX” brand.

 

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.58% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance does not constitute a reliable indicator of future results. Future forecasts do not constitute a reliable indicator of future performance. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk tolerance. You should not deposit more than you are prepared to lose. Please ensure you fully understand the risk associated with the product envisaged and seek independent advice, if necessary. AgeFX does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product. FP Asset Management Cyprus Ltd is not a financial adviser and all services are provided on an execution only basis. Please read our Risk Disclosure document.

 

FP Asset Management Cyprus Ltd does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product. FP Asset Management Cyprus Ltd is not a financial adviser and all services are provided on an execution only basis.

% completed

Payment methods
In order to make a deposit, you first need to verify your account.
Your file has been rejected. Please contact customer support.
I understand

Fund your account

This section is open for clients only, please log in or sign up
Live Chat