What are Commodities?

The basic definition of a commodity is any item that can be bought and later resold. Most of today’s widely traded commodities are strategic resources such as oil, natural gas, precious metals, and staple products. The commodities markets are global and respond rapidly to changes in supply and demand. Commodity prices can rise and fall rapidly in response to economic, political and natural events. Commodities traders pay particular attention to fundamental analysis when they attempt to predict the future performance of assets.

The Basic Principles of Commodities Trading
Commodities trading is like any other form of transaction. The goal is to buy Commodities at a low price and sell them at a high price.

For example:

Gold is quoted at $1,284.78 (Bid price) and $1,285.63 (Ask price). You buy 10 ounces at $1,285.63 per ounce. After one week you close (sell) your position and earn a profit of $226.5

How is that possible?
A week after you opened your position, gold was quoted at $1,308.28 (Bid price) to $1,309.13 (Ask price). When you bought your 10 ounces (using our leverage) they cost $12,856.3.
You sold them for $13,082.8.
So you earned $226.5.

Diversify your Trading Portfolio With Commodities

You can trade the world’s major commodities on the Beneffx.com platform. When you open a position on a commodity, you are not buying the underlying asset; instead, you are investing in the changes in the commodities’ market price.

  • Forex

  • Stocks

  • Commodities

  • Indices

  • Cryptocurrencies

Advantages of Trading Commodities at Beneffx.com

Commodities trading encompasses a diverse range of assets with different risk levels. Gold and Oil are often volatile, but even more stable commodities can experience sudden price changes in response to global events. Beneffx.com gives you all the tools and advanced platform features that you need to trade commodities effectively. We also provide you with live data feeds, news and analysis, professional charts and trading signals.

Leverage
Leverage enables you to gain a large exposure to any financial market with only a small amount of your capital. By doing so, you are able to increase your overall profits only because they are based on the total investment amount of the position.
Diversification
Spreading your investments across different asset classes creates a well-diversified portfolio, lowers the volatility of the market with direct relation to your trades and reduces your overall risk exposure.
Risk management
Exercising good money management is always possible thanks to the stop loss/take profit parameters. By automatically closing any open position in case the price either drops or rises beyond a predetermined point, you can continuously maintain your risk levels conservative.
Profit opportunities
It is possible to profit from online trading in both rising and falling markets. You can either open a SELL position and profit as the asset price drops or open a BUY position and profit as the asset price rises.

Who Can Trade Commodities?

Online Commodity trading is already a highly popular form of investment with millions of traders worldwide. Almost anybody can trade Commodities if they are willing to apply the basic principles of risk management. The Beneffx.com online Education Center contains all the learning tools and educational resources that you need to begin online Commodity trading.

Many of Beneffx.com top investors signed up as absolute beginners with no experience of the financial markets. They used the Education Center and free Demo Account to master the basics of Commodity trading. Commodity traders range from novice investors who trade part-time, to expert investors who manage complex personal portfolios on a full-time basis. The Beneffx.com platform gives you the freedom to set your own financial goals and manage your own investments.

Company information: This website is operated by Optium LTD. Registration No. 110334 with registered address at Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960 , Payment agent information: Key Solutions LTD, registration number 206198441 , Address: Banishora, bl 56/A/5/15, 1233 Sofia, Bulgaria.
Risk Warning: Trading Contracts for Difference (CFDs) on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Contracts for Difference (CFDs), you should carefully consider your trading objectives, level of experience and risk appetite. It is possible for you to sustain losses that exceed your invested capital and therefore you should not deposit money that you cannot afford to lose.