Commodity markets rely on fungible goods, meaning they are the same no matter who produces it, and are usually raw materials that are traded or primary products that are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardised contracts.

 

Spread betting on commodities is on the increase with many investors taking advantage of the high levels of volatility in the precious metal and energy markets.

A commodity portfolio can be utilised to reduce risk, diversify an investment strategy, and potentially enhance returns. Traditionally commodities have demonstrated very little correlation with popular financial products such as shares and bonds. They have also historically performed with considerable volatility and the future looks favourable for further growth.

Supply and demand are the main drivers of commodities prices. The growth in global population has largely driven demand, more mouths to feed, infrastructure to build and cars to fuel. To learn more about the commodities you can spread bet with Equitrade Capital please Contact Us.