Commodities Trading Dubai

The commodities market had always made a great impact on nations and people since the past ages. This market is one where raw or non manufactured products are exchanged. Raw commodities are dealt on commodity exchanges that have been regularized and are then purchased or sold according to the standardized contracts. 

The modern commodity markets trace back from their traditional roots in the trading of agricultural products. Corn, rice, wheat, pigs and cattle were widely utilized as standard trading instruments in the 19^th century in the US. There are also other foods like soybeans that were used for trading.

Today, commodities are being pursued by investors around the world because of their stable characteristic. They are constant and do not change in quality.

There are various categories in the commodities market namely energy resources, precious metals and agricultural products.

Energy resources

Coal and crude oil are two prime examples of energy resources. Coal and crude has been used since ancient times but it was only after the invention of the internal combustion engines and automobiles when it became highly regarded around the world. Crude oil prices are impacted by the national and international politics since the significant oil reserves are situated in only a few countries.  Dubai, UAE is one of the major sources of crude oil.

Precious Metals

This consists of gold, silver and platinum. With the interest rates being on the rise along with the dollar and euro crisis, precious metals particularly gold have been recognized for what it truly is – a safe haven. Many investors are pursuing in gold as a hedge against inflation. Gold shows its best performance during periods of economic uncertainties and that is why gold is being highly favored nowadays.

Agricultural

Rice, corn, wheat, coffee and sugar belong to this category. Just like in currencies and precious metals, agricultural investments can be traded through various ways including futures, stocks and Exchange Traded Funds (ETFs). Most of these products come in contracts that are quoted in US dollars per pound.

Commodity Trading Online

Trading with commodities is now very doable and convenient among retail traders and investors, thanks to the Internet and other technological advances over the past years. Exchanges of futures contract can be conducted in one or two financial settings which include the currency market, money market and bond market.
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