Most investors know about tradable commodities, but not many take advantage of them. Commodities are a great addition to any portfolio, as long as you invest prudently.
Commodities are the perfect addition for investors who are looking to diversify and solidify their portfolios. Here are some of the most important benefits of commodity trading.
Profits can be huge– For skilled investors, the commodities market offers magnified wins (and also losses). Commodity futures are bought almost entirely on margin, so the variance is much higher.
Diversifies your portfolio– Investing entirely in stocks is a dangerous proposition, no matter how safe they are. Commodities safeguard you against crashes and economic disasters.
Protects against inflation– The value of money goes down and causes inflation in a weak economy. During periods of inflation, the price of commodities tends to go up. Making commodities an ideal way to protect your portfolio against inflation.
Charges low commissions– Compared to stocks, the commission you pay for each commodity transaction is low. If you make a lot of short-term trades, commodities are perfect.
|Instrument||Typical Spread (in pips)*||Value of 1 lot||Trading hours (GST)|
|.USCocoa_#||14||t10 instruments||12:45 am – 9:30 pm|
|.USCoffee_#||0.8||2000 pounds*||12:15 am – 9:30 pm|
|.USCotto_#||0.3||500 pounds*||5:00 am – 10:20 pm|
|.USSugar_#||0.07||1120 pounds*||11:30 am – 9:00 pm|
|.WTICrude#||0.09||1000 barrels||24 hours with break from 01:00 am to 02:00 am|
|Brent Crude Oil||0.1||100 barrels||24 hours with break from 02:00 am to 4:00 am|
|BrentCrude#||0.1||1000 barrels||24 hours with break from 02:00 am to 4:00 am|
|US Cocoa||14||1 instrument||12:45 am – 9:30 pm|
|US Cotton||t0.3||100 pounds*||5:00 am – 10:20 pm|
|US Sugar||0.07||100 pounds*||11:30 am – 9:00 pm|
|WTI Crude Oil||0.09||100 barrels||24 hours with break from 01:00 am to 02:00 am|
|XAGUSD Silver||0.14||500 troy ounce||24 hours with break from 00:00 am to 01:00 am|
|XAGUSD#||0.14||5000 troy ounces||24 hours with break from 00:00 am to 01:00 am|
|XAUUSD||1.6||10 troy ounces||24 hours with break from 00:00 am to 01:00 am|
|XAUUSD#||t1.6||100 troy ounces||24 hours with break from 00:00 am to 01:00 am|
|Aluminium||18||25 metric tonnes*||5:00 am - 11:00 pm|
|Copper.LME||50||30 metric tonnes*||5:00 am - 11:00 pm|
|Corn||0.02||5000 bushels*||5:00 am - 5:45 pm, 6:30 pm - 11:15 pm|
|Natgas||0.025||10000 million British thermal units (MMBtu)*||24 hours with break from 2:00 am to 3:00 am|
|Nickel||135||10 metric tonnes*||5:00 am - 11:00 pm|
|Platinum||10||50 troy ounces*||24 hours with break from 2:00 am to 3:00 am|
|Soybean||0.05||5000 bushels*||5:00 am - 5:45 pm, 6:30 pm - 11:15 pm|
|Wheat||0.025||5000 bushels*||5:00 am - 5:45 pm, 6:30 pm - 6:15 pm|
|Zinc||20||50 metric tonnes*||5:00 am - 11:00 pm|
Right after you open or close your trading position, spread will be deducted from your account, which is the difference between the current ask and bid price. Please note: Alpho reserves the right to expand spread according to its discretion, reduce leverage, set the maximum limit of orders and the total client exposure. Alpho also reserves the right to increase margin in those situations when the market conditions require so.
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