What is commodities trading?

Any tangible product that may be purchased or sold on the commodities market is referred to as a commodity. Commodities are comparable to other financial markets in how they operate. Changes in the supply and demand of the products being exchanged often impact the exchange value of commodities. Commodities may be bought and sold on the open market or via derivatives.

How does commodity trading work?

To begin trading commodities, you must first pick what you want to trade. It’s crucial to think about the qualities of commodities and how external variables could impact their price. Financial derivatives are often used to trade commodities. If you believe the price of the commodity will climb, you should purchase, and if you believe the price will decrease, you should sell.

Pricing and liquidity providers.

Our pricing system creates a mid-point by aggregating actual prices from our liquidity suppliers in real-time. For each tradable asset on our trading platform, a custom-built pricing algorithm determines the spread symmetrically around the midpoint. As market prices vary during the day, this mid-point changes.