Trading commodities on the Visual Trading™ platform is as simple and straight forward as it is to trade currencies. Easy-Forex® offers a number of commodities which are traded differently to currencies.
Energy Commodities traded with Easy-Forex® include, WTI Crude Oil, Brent Crude, Gas Oil and Heating Oil. These commodities are traded by investors for a number of reasons, including hedging, investing and speculating. On a large scale, energy commodities are traded by energy companies and consumers to hedge themselves against rising or falling prices.
Commodities are usually traded using futures contracts. A futures contract is a contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. At Easy-Forex® you can trade commodities using our Day Trading product, keep in mind that the deals are cash settled (you don't take delivery of the actual goods) and that they must expire on a set day in the future. The pricing of all commodities day trading deals is based on the next futures delivery month.
How to open a Day Trade with the commodities with Easy-Forex®
- First, log into your account in the Trade Zone
- Select the Commodities tab in the central trading ticket
- You will notice that the Rates Table on the left has changed from currencies to commodities. You can customize your commodities table in the same way you can your currency rates table
- Select which commodity you want to buy or to sell
- Select the amount to trade
- Select your margin to risk
- Your Stop Loss is set automatically, you can change this after you’ve opened your deal by clicking ‘modify’ in the My Position area
- Choose to click ‘Freeze Now’ to lock in a rate for a few seconds or go directly to Trade Now to open the deal
- Note that there is no Renewal Date for commodities as they are Futures Contracts – the expiry date of this contract is shown in the trading ticket
- You can choose to close this deal before the expiry date – your investment (amount to trade) will be returned to the free balance in your account.