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Instruments

MogaFX offers a wide range of instruments in our portfolio to suit all traders.
With more than 60+ different instruments on our trading platform, you can access a wide variety of markets, including forex, indices, commodities, CFDs, and Crypto.

Commodities

Commodities trading is the buying and selling of raw physical asset or raw materials.
Trade your opinion of the global commodity market with products such as gold, oil, natural gas or precious metals.

Advantages of Commodities

Easy to Understand

Driven mostly by supply and demand, commodities tend to stay stable and relatively easy to understand.

Inflation Protection

Commodities tend to go up when other economies experience inflation.

Low Spreads

Enjoy competitive spreads, fast execution, zero commissions and deep liquidity.

Trade Long or Short

Allow you to trade both shorts and longs depending on the market.

Trading on Commodities with MogaFX

Enter a thrilling market driven by suppliers, merchants and buyers who lock in prices on future deliveries. Trade gold, oil and much more.

What is a Commodity?

Commodities are commercial products that appear naturally in nature or are agriculturally cultivated. These products can be divided into two main types.

Hard Commodities – These commodities are extracted or mined. Some common hard commodities are precious metals, like gold, silver, and crude oil.

Soft Commodities – These commodities are grow products related to agriculture like cotton, coffee, corn, and livestock.

What are Some of the Most Popular Commodities?

  • ● WTI Crude Oil
  • ● Brent Crude Oil
  • ● Gold
  • ● Copper
  • ● Silver
  • ● Natural Gas
  • ● Soybeans

What Factors Affect the Price of the Commodities?

Liquidity

When trading commodities, one of the most important factors to consider is liquidity. High liquidity means there is a high supply and demand. Thus, traders can easily tell whether to sell or buy the commodities. A more liquid market is usually considered to have less risk as the chances of someone willing to take the other position are higher. If a demand for a commodity goes up, so will the price and vice versa. Additionally, if there is a drop in the supply, the price will go up. If there is an increase in supply, the price will go down.

Stock and Inventories

Some products can be affected by external factors which in turn will affect the stock and inventories. Weather, pandemics, staff issues, political or economic factors which can affect taxes, laws and government etc.

Nature

The nature affects the commodity prices greatly, especially the soft commodities as agricultural products are highly affected by weather. Favourable weather may result in a greater supply of a commodity than expected, which makes the price drop. Cold weather can result in an increased demand for energy products, which in turn increases the prices.

Inflation

A commodity price usually changes in correspondence with inflation.

Currency Strength

If a commodity is strongly connected to a currency, a change in this currency can affect the price of the commodity. Monitoring these connections are important when trading commodities.

Geopolitical Situations

Regions with a big uncertainty in the political situation can affect the commodities if they are produced in these regions.

Economic Wealth

The wealth of a country can also plays a role in the price of a commodity. If a country is a major producer or buyer of a commodity, the wealth of the country can affect the price of the commodity as the purchasing power of the population is directly related to this.

How Does Commodity Trading with MogaFX Work?

There are many ways to trade a commodity, with us you can trade a commodity as a CFD - a Contract For Difference - which means that you speculate on the movement of the price of the commodity and have the possibility to trade either long or short depending on in what way you think the price movement will go.

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