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Frequently asked questions about Commodities.
Commodities-based questions answered for you in 2 sentences or less.
What are examples of commodities?
Commodities are raw materials or primary products, generally classified as hard and soft.Soft commodities are agricultural produce such as: sugar, coffee, and cocoa, while hard commodities are mined or extracted resources such as rubber, copper, and gold.
Do I own the commodities I trade online?
Typically, this depends on whether you trade derivatives or spot commodities.Egmarkets offers derivatives trading, which means that you do not own the commodities that you trade.
How much can I trade commodities with?
Egmarkets imposes no minimum deposit amount, and some people have traded commodities with as little as N10,000. However, it is advised to start with enough money to place trades without compromising your capital.
How soon can I start trading commodities?
Beginner or pro, you can be signed up and ready to trade with Egmarkets in a day. We have courses on commodity trading for beginners to help you get started.
Where can I trade commodities?
If you’re looking for a place to safely trade commodities, you’ve come to the right place! Click here to begin your journey. If you’re a beginner, that’s not a problem- we’ll teach you how commodity trading works.
What functions do commodities trading perform?
In addition to trading for direct profits, commodities trading can be used for, buying or selling a physical product, hedging, speculating, portfolio diversification, etc.
What are some commodities markets?
Chicago Mercantile Exchange (CME), Tokyo Commodity Exchange, New York Mercantile Exchange (NYMEX), London Metals Exchange, and Chicago Board of Trade (CBOT) are some of the most popular commodities exchanges.
What are spot commodities? Can I trade them?
Owing to the physical nature of commodities, they can be delivered just like normal products. Commodities purchased in the spot market are sent out for immediate delivery, which is the exchange of cash. Because of distance and other logistics, it might be difficult to trade spot commodities from Nigeria.
What are the requirements for trading in the commodity exchange?
In general, identity verification and bank account details are required for trading on commodity exchanges in Nigeria.
Commodity trading tips and strategies
Avoid extreme volatility. Learn the popular trends and patterns. Pay attention to fundamental and technical analyses. Trade logically, not emotionally.
What is the world’s most traded commodity?
In no order, the top commodities to trade are WTI Crude Oil, Corn, Brent crude oil, natural gas, coffee, soybeans In no order, crude oil.
What is ‘Basis Grade’?
It is the minimum required standard that a commodity is allowed to have. It is a means of guaranteeing uniformity and quality on all deliverable commodities.
Spot vs. Futures. What’s the difference?
Spot orders are those which are delivered immediately, while a futures contract is a present agreement about a future commodities order.
Where can I get commodities signals from?
There are several resources online for this purpose. Egmarkets also sends quality signals to clients, right into your inbox. Sign up for Egmarkets signals here.