Commodities Trading Made Easy with ZuluTrade

Commodity trading is where various commodities and their derivatives products are bought and sold. A commodity is any raw material or primary agricultural product that can be bought or sold, whether wheat, gold, or crude oil, among many others.

When you engage in commodity trading, such commodities can diversify your asset portfolio. If you want to explore commodity trading, take the first step, and brush up on your basics. Get acquainted with the commodity market and how things work here.

Commodity returns have a low correlation to returns from other assets. As an individual asset class, commodities can partially diversify your investment portfolio.

Commodities are considered a good hedge against inflation as their prices tend to rise during periods of high inflation. This helps maintain the purchasing power parity.

Supply disruptions during a natural disaster, an economic crisis, or war could push up the prices of commodities. However, the trading of commodities could help you guard against loss by leveraging strategically on price swings.

During a trade, the buyer and seller remain anonymous, thus enabling a transparent price discovery without any scope for manipulation.