EN 
CH 3 Things to Know About Commodity Trading Online
Are you ready to take your bottom line to the next level from the comfort of your home? Commodity trading online may be your key to building more wealth long term.
Inflation is currently the highest it’s been in four decades, and both stocks and bonds are down. For this reason, many investors are focusing their eyes on real assets, like commodities, to strengthen their portfolios.
But what exactly is online commodity trading? Here’s a rundown on everything you need to know about trading commodities.
Let’s jump in!
1. Commodity Trading Online Can Make Your Portfolio More Diverse
Commodities are raw materials, or basic goods, that are utilized to produce everyday goods. These commodities usually fall under four categories:
Metals (steel, gold, etc.)
Energy (oil, natural gas, coal, etc.)
Agricultural (corn, grain, etc.)
Meat and livestock (bacon, beef, etc.)
Commodities trading online is an excellent way to diversify an existing portfolio as well as hedge against inflation and risk. That’s because when other assets, like stocks, go down, commodity prices typically go up, and vice versa.
Commodities can also help with hedging against geopolitical volatility that may disrupt the world’s supply chain and thus cause shortages in commodities like oil. An example of such a situation is the Russia and Ukraine conflict that erupted in 2022.
2. Commodities Online Trading Is Convenient
Another important thing to understand about online commodity trading is that it’s easy. You can trade from any device that is internet compatible, like a laptop or smartphone.
In addition, commodities trading online offers immense flexibility. For instance, you can hold both short and long positions. A short position is where you sell an asset you don’t own, whereas a long position is where you buy and own an asset.
With online commodity trading, you can also size your position to get the exact exposure you’re looking for.
Finally, you can trade outside of business hours.
3. Commodity Online Trading Requires Risk Tolerance
Although trading commodities online can be profitable, it is critical that you have a high tolerance for risk. In other words, you must be willing to tolerate losses in the short term as you pursue gains long term. That’s because moves in market prices can result in large losses and gains.
As a general rule of thumb, commodities that you trade online should make up no more than 20% of your overall portfolio.
How We Can Help with Commodity Training Online
Commodity trading online is a great way to diversify portfolios and stands out for being convenient. However, it does require that you have a high tolerance for risk.
At The Liquidity, we take pride in helping investors to begin trading commodities with confidence. Each of our trading platforms is powered by advanced features and innovative technology to cater to your evolving needs.
Get in touch with us to learn more about our services, and partner with us today!
