commodities

COMMODITIES TRADING

COPPER, CRUDE, NATURAL GAS AND AGRICULTURAL COMMODITIES

Trading commodities is extremely popular because of the choice they offer and their diversity in regards to what affects their prices. Commodities are inherently linked to the development of organized society – agriculture and mining are tightly intertwined with the history of the human race. Initially commodities were traded between themselves – a bushel of grain for oil, a copper ingot for sugar and spices – as economies and societies grew though so did the use of commodities. Today commodity trading is immensely popular as it is relatively easy to understand, driven largely by supply and demand and commodities tend to stay stable or even go up when stock prices go down.

 

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Trade Commodities With SKYLINE TRADER LTD

Trade Anyway You Want

Are you a beginner or experienced trader? A day-trader or a long-term investor? No matter what your experience or strategy, Skyline metals can be traded multiple ways.

Trade Anywhere

Use it on your phone, tablet or desktop – our intuitive trading app allows you to trade anywhere there’s an internet connection. Make the world your market.

METALS TRADING

We use metal items daily in the form of tools, utensils, jewelry even the majority of our vehicles from bicycles to subways are made of metal. Precious metals such as gold, silver, platinum and palladium are not only desirable due to their luster and decorative appeal, but because of their industrial applications. Platinum is an inert metal meaning it does not react with other chemicals, gold, silver, palladium and copper are all used extensively in electronics and manufacturing.

Metals are extremely popular amongst traders and it is usually recommended by financial advisors to have some sort of investment in metals when trading other instruments. There are many reasons for this, but the biggest appeal is that generally when markets are volatile and currencies are down metals increase in price. This is due to people investing in metals because they are considered safe-havens meaning types of trading instruments that markets believe are “safer” or their price is more stable than other instruments.

Beyond this there are many ways to trade metals – CFD metals allow you to trade on the price movement of the metal, but doesn’t obligate you to actually buy it. This allows for more freedom when trading – because when you want to buy the actual metal you have to find someone that sells it at the price you want to pay and when you sell it you have to find someone to buy it at the price you want to get. Another benefit is that you can buy and sell CFDs without owning the actual metal. This means if you think the price of metal is going up, you can “buy” (or go long as is known in traders’ lingo) if you think the price is going down, you can “Sell” (or go short). In both cases you will be able to take advantage of the difference in price between the time you “open” the position (essentially start the trade) and “closed” it (or stopped the trade).

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Options are another way to trade metals – which allows for a completely different trading experience. Although it also allows you to trade both if the price goes up or goes down, it does it in a different way. When “buying” you decide what price the instrument will reach within a specific timeframe. You pay the person “selling” the option a premium. If you anticipate that the price of a currency pair will rise, you may take advantage of that movement by buying a Call/ If you anticipate that the price of a currency pair will fall, you may take advantage of that movement by buying a Put. The benefit of this type of trading is that you only risk your premium, which some people prefer and not all instruments offer.

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ENERGY TRADING

Energy trading involves products like crude oil, electricity, natural gas and wind power. Since these commodities often fluctuate abruptly they can be attractive to speculators.

Energy trading offers traders , offers investors predictable, long-term, inflation-linked returns and direct significant benefit from increasing power prices. This is mainly due to the demand for clean and cheap energy which renewable energy provides.

Relevant Market Risks in Energy Trading….
The main market risks are in the area of market price development, volume and liquidity. For all risks, risk management should specify key figures, calculation methods and frameworks for action, which are monitored by the risk controlling function in the operational business.
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