The commodity market is a financial market that deals with raw materials. It’s also known as a ‘primary economic sector’. With SWGMarkets you can access the major commodity markets such as oil and precious metals. They are natural resources traded on exchanges around the world.
The production of commodities is dependent on different factors, such as: Supply and demand; weather impacts; the US dollar (usually priced against) and economic and political sentiment. These factors mean that commodities can fluctuate significantly. Previously if you wanted to benefit from the price change of a commodity, you had to physically purchase and store it. However, now you’re able to invest in the price of different commodities in the form of CFDs (Contract for Difference). When you trade commodities in the form of CFDs you invest in the price - you don’t physically own it. Commodities are also traded as futures contracts. These are agreements that trade assets at an agreed price and date in the future. It therefore enables you to trade the contracts without having to own the underlying asset.
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