What is Spot Trading?
Spot Trading means buying and selling of assets at the current market price, with the intention of taking delivery of the assets immediately.
At STARTRADER, you can spot trade energies via CFDs. So, you do not take ownership of the underlying asset, but benefit from real-time change in pricing of the asset. Moreover, you can trade larger volumes with only a small investment(margin). While this can lead to greater profits, it can also amplify losses, which is why you must always invest and trade wisely.
To explain this better, let us consider an example where you think the price of wheat is going to increase and so you buy the spot wheat market (going long). If the price of wheat increases, you make a profit but if it decreases, you make a loss.
What are the most traded commodities in the world?
The most traded commodities, by trading volume, are US crude oil, Brent crude, copper, natural gas and agricultural products – such as coffee, wheat and sugar.
Why trade Commodities with CFDs?
You might want to trade commodities with CFDs if:
- You want to go both long and short
- You want to trade in larger volumes with a smaller capital
- You want to hedge your portfolio
- You want short-term gains
- You want to trade without owning the assets
- You want to trade only on the price movements of assets
At STARTRADER, we offer ultra-tight spreads and high leverage to enhance your trading experience. To know more about our offerings in the commodities market, click here.
