What Are Futures –Commodities?
The two main areas of commodities futures that we are offering are Energy, and Metals. The most popular energy futures are oil and gasoline often referred to as “Black Gold”. Metals using futures include gold, silver, and copper. Since some of them form the basis of the consumer products we use in our daily lives, it’s easy to see that commodities play a fundamental role in domestic economies and the global economy.?
Prices of commodities change on a weekly or even daily basis. Contract prices change as well. That is why the cost of gasoline, and gold changes so often.
How Do Commodity Future CFD’s Work?
Buyers of energy, and metal use futures CFD’s to fix the price of the commodity they are purchasing. That reduces their risk that prices will go up. Sellers of these commodities use futures to guarantee they will receive the agreed-upon price. They remove the risk of a price drop.
When you trade commodity futures with HonorFX, you are not buying any physical asset. Instead, you are simply trading on the real-time price movements of the commodity. CFDs allow traders to speculate on the price movement of metals and oil, without taking direct ownership of the underlying asset. CFDs allow you to speculate on both rising and falling prices, meaning you can trade in a bull or bear market.