Trading gold, silver, crude oil and other commodities is one of the best ways to diversify your investment portfolio and hedge your risks. Even in times of inflation or economic uncertainty, buyers and sellers of contracts are protected from losses caused by wild price fluctuations.
CM Trade is unique in the commodity trading market and is committed to providing traders with the best trading experience. Traders can diversify their portfolios benefiting from the latest technology and efficient commodity prices.
Gold is often seen as an inflation hedge, and regardless of the current state of the financial markets, opportunities to trade gold can be plentiful.
Product Code: XAUUSD
The price of gold, unlike most commodities, is not driven by production and consumption levels - so far most gold mines continue to be mined and can re-enter the gold market. As a result, gold prices are often swayed by political events and become a tool in turbulent times.
Product Code: XAGUSD
As a commodity, silver has irreplaceable characteristics in large-scale industrial applications and making jewelry and silver products. Because it is widely used in the electronics industry and as a photosensitive material for photography, its price fluctuates more than many other metals.
Advantages of commodity trading
0 commission for trading, low spread
No contract expiration time
T+0 two-way trading, profitable both ups and downs
Low transaction threshold, high leverage ratio
5*24h hours trading
Huge daily trading volume, high market transparency
Factors affecting commodity transactions
Commodities are quoted in U.S. dollars, and investors generally use gold As alternative investment products to the US dollar, they have relatively negative Generally speaking, when the dollar rises, the price of gold will fall.
Need for hedging
Events such as wars, geopolitical tensions, and economic crises can trigger It stimulates the safe-haven demand in the market, thereby increasing the safe-haven buying of commodities, support its price rise.
Supply and demand
If the supply of gold production is higher than the demand will cause the price to fall. Likewise, if demand for gold production increases while supply falls short it will lead to cause prices to rise.
Why trade commodities?
Commodity is a two-way transaction, which can be long (buy up) or short (buy down).
In simple terms, if you think the price of a commodity will go up, you buy it; if you think it will go down, you sell it. If the direction is judged correctly, the middle price difference will be earned.
The calculation method is as follows: Total profit and loss = (selling price – buying price) x contract unit x trading lot ± overnight interest
Note: There is no need to pay overnight interest when closing the position on the day of opening the position; the actual overnight interest is mainly based on the actual transaction; no commission is charged for placing orders through the CM Trade platform.
Give me a example
You buy 3 lots of gold USD XAUUSD at the price of 1801.22 through the CM Trade platform, and the contract unit of each lot is 100 ounces, and you close the position at the selling price of 1804.22 on the same day.
=(selling price – buying price) x contract unit x trading lot ± overnight interest
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