Vantage FX offers the opportunity to trade a range of commodities with maximum Forex leverage. Clients can trade precious metals such as gold, silver, copper, platinum and palladium, as well as crude oil across two different trading products that will match individual trading styles and experience levels.
How does commodity trading work?
Trading spot precious metals with Vantage FX occurs in a very similar way to a standard forex trade, in that traders are able to purchase these goods against the USD or AUD, much the same as one would a currency pair on the Vantage FX MetaTrader 4 Platform. Choose from:
Any time you trade a commodity with Vantage FX, you’re trading a CFD (Contract for Difference). It means that when you trade the commodity, for example gold, you’re not buying the physical product but investing in an expected price movement. The nature of CFDs means you’re able to profit whether the market is rising or falling.
Why is gold a popular commodity to trade?
Over many centuries, gold has remained valuable and fairly liquid regardless of where you are in the world. Gold is a popular commodity with traders who are looking for a hedging option or simply a less volatile product. In times of great volatility, political changes or even drastic moves from data expectations, gold remains stable and is less reactive to such market forces.
As gold is seen as a ‘safe haven’ asset, traders that may not actively invest in gold will still keep an eye on its movements as an indicator – providing clues about uncertainty in the market.