Commodities | Trading Terms

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Gold and Oil are just the tip of the iceberg when it comes to commodities. In this video David Jones explains what the three main groups are and what factors influence them the most.

Energy, precious metals and agricultural products are what make the world function. They are its lifeblood and vital organs. Because of this importance they are actually traded often with futures, so that there is a guarantee that they will be there when needed.

From politics and weather to disease and speculation, commodities are among the most volatile instruments in the financial world. Their specifics are governed by a wide range of variables and understanding what drives their prices up and down is one of the hardest challenges that traders face.

Among the other more popular commodities we have silver, natural gas, wheat, orange juice, cattle. The list is actually quite long and the factors that change their price too. Whether it’s interest rates in the U.S., oil production in Saudi Arabia and Venezuela, or a insect invasion in Southeast Asia, it’s definitely an exciting world to trade in.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.

Comments

Brandon Spiegel - Future Millionaire says:

Thanks for the knowledge, what platform are you using for the price research by the way?

David Neil says:

Created a practice account and made £30,000 but I have no idea what I'm doing. I grab some oil stocks and turn on the take profit tool and off we go.

Paul James says:

which is the best company to trade commodities with

Andres Dragustinovis says:

Excellent video. Congrats!

Zaneta Solis says:

Horrible writing dude, can hardly read it. You write like a doctor.

Charles Zack says:

His name is David Jones. Just like Davy Jones from the Monkees. They both have a British accent too.

Rinkesh Virani says:

Thanks for the video David. It was really insightful.

Can you shed some light on alternative sources of data that is becoming popular nowadays and is been used extensively by traders as a competitive edge?

Walton Lewis says:

When you trade commodities like oil, do they mail you a barrel of oil or something? and you keep it in your garage until you sell it and then you have to go to UPS and mail it?… How exactly does that work?

Paul Armour Tech Airsoft says:

How do I get started using your platform we have been hit by very hard time and I'm looking for a way to try and make some money other than working 7 days a week. Thanks for any help or advice. Paul

Garrett Grow says:

What broker are you using, sir?

Wilford Madyira says:

Is there an equivalent economic calendar for commodities

Jake Waitze says:

What platform are you using for trading?

Williamson Vedder says:

Good morning David, I have been enjoying your insightful videos very much. Most oscillating indicators are historical, so, in your opinion what are the best leading indicators that you use? Oil? Oil futures? A whole basket of oil traded stocks and indices? If you could give me a few examples that you really like, I would love to hear. Or how about a video of pros and cons of leading and lagging market indicators and their uses for short and or long term trading. Thank you for your time, Williamson

Артем Проскуряков says:

David, thank you very much.

Lee Chi-Wing says:

Hi there david! Just wanna stop by and say thanks to you and this channel from helping me to learn many things from zero knowledge about investing in such shorter period of time, the videos are very simple and easy to understand. I've a question recently though, would like to ask is there any ways or indicators that could show or imply us that there's big investors in a certain stock, as we all know, bankers could lift the stock price higher, which is why I'm curious to know if we could identify them before a stock starting its trend upwards. Do hope you could reply this message. Thank you very much! 🙂

Joel Ibbitson says:

Could you make a video on CFD's; how they work, and how to use them, please? Thanks 🙂

Matej says:

Can you make a video, what makes sense for a long-term portfolio in your trading platform?

Matej says:

Thanks for the effort, video and tips

Sweetmboy Kanteh says:

Thanks so much

chatnik007 says:

Thanks for the video! One question. Is it more important to keep an eye on the NEWS or on the graphs watching different levels. Maybe you would do both things?
Appreciate the answer

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