Commodities

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There are many key factors to consider both before and whilst one trades commodities. On this page we will touch upon some of the uncertainties encountered when trading, and describe the relationship between commodity markets and other financial markets. We will also discuss the key commodity exchanges and regulators that traders should be aware of.


Nothing is Certain


Nothing is Certain

Nothing is Certain

Even in commodity markets with a typically low volatility, there are no ‘trading certainties’. For example, in March 2014, many traders predicted that Brent Crude Oil prices would only continue to increase in value. However, these traders’ forecasts were proved incorrect in the latter part of the same year, when Brent Crude Oil prices saw a dramatic drop in value. Similarly, although a number of OPEC (Organisation of the Petroleum Exporting Countries) officials have publicly stated that they do not believe that oil prices will ever climb back up to over $100 per barrel again, traders should not completely disregard the possibility of this occurring.

Commodity Markets and Equity Markets


Commodity Markets and Equity Markets

Commodity Markets and Equity Markets

The changing values of commodities are able to significantly influence the movement of other markets. For example, a large number of businesses depend on the extraction or harvesting of commodities. Through observing the relevant equities, commodities traders can potentially find themselves in a uniquely advantageous position. ​


One example of this is the effect that oil prices can have on different market sectors. From the late months of 2014 until early 2015, declining oil prices led to the stock prices of many energy companies falling. However, at the same time, many airlines saw profit increases – as fuel makes up a large part of airline expenses.


In this instance, those trading oil may have been first to notice its falling prices. Fast-acting commodity traders could have used this information to their advantage by opening positions on equities likely to feel the effects of the falling prices.

Key Commodity Exchanges and Commodity Regulators


Key Commodity Exchanges and Commodity Regulators

Key Commodity Exchanges and Commodity Regulators

Commodities are traded on international commodity exchanges. The largest exchange in the US is the Chicago Mercantile Exchange & Chicago Board of Trade, also known as the CME Group. The CME group owns and operates major options and futures exchanges in Chicago, and New York – such as the New York Mercantile exchange – in addition to online trading platforms. China, India and Japan are also home to large commodity exchanges.

A range of organisations exist to regulate commodities trading. In the US, the main regulatory body is the Commodities Futures Trading Commission (CFTC). The principle regulator in Continental Europe is the European Securities and Markets Authority (ESMA). In the UK, the regulation of commodities trading is conducted by the Financial Conduct Authority (FCA).​

​COMMODITIES TRADING WITH ETX Capital

​COMMODITIES TRADING WITH ETX Capital

​COMMODITIES TRADING WITH ETX Capital

  • Select Your Trading Format - When it comes to Commodities Trading, ETX Capital offers its clients a choice on many products; between ‘rolling daily’ and ‘futures’ formats.
  • Large Range of Choice - From Cocoa, Copper and Crude Oil to Silver, Sugar and Soybeans, ETX Capital offers a comprehensive range of commodities trading opportunities.
  • Available on Three Different Platforms - ETX Capital offers commodity trading on every platform it operates; clients can trade Commodities via the ETX TraderPro, ETX MT4 or ETX Binary platforms.

AWARD WINNING

  • moneywise

    Money AM Awards 2012 Best Online Charts

  • investments

    Investment ​Trends Award 2013 Best Value for Money

  • ukforex

    UK ​Forex ​Award 2013 Best Forex Trading Tool & Software

Current SPREADS & PRICES

All market data displayed has been derived by Monecor and is not in its original raw form.


ETX Blog

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Financial Conduct Authority

Authorised and Regulated

ETX Capital is authorised and regulated by the Financial Conduct Authority: Financial Services Number 124721.

Choice

Choice

There are thousands of products available to trade, including indices, commodities, stocks and forex pairs.

Mobility

Mobility

Take our platforms with you wherever you go: all three are available on mobile and tablet devices on both iOS and Android.

ETX Blog

Week Ahead: Will non-farm payrolls tee up a Fed rate hike? Neil Wilson / Federal Reserve: Is a September rate hike really a possibility? Neil Wilson / Week Ahead: What do you call a collection of central bankers? Neil Wilson / Margin changes update Neil Wilson / Gold demand soars as bond yields turn negative Neil Wilson / Why 3am is the best time to trade forex Neil Wilson / Italy: The sick man of Europe Neil Wilson / Commodity market set for rebound: World Bank Neil Wilson / Apple, Facebook, Google and Facebook earnings preview Neil Wilson / Nintendo and gaming stocks – Gotta catch them all Neil Wilson / Are stock markets in bubble territory? Neil Wilson / Will Amazon’s stock keep rising? Neil Wilson / Week ahead: what to watch in the markets Neil Wilson / Earnings season preview: what to expect from Q2 Neil Wilson / Five things to watch in the markets this week Neil Wilson / Q2 market review: Oil and gold win as pound slumps on Brexit Neil Wilson / 4 tips for trading in volatile markets Neil Wilson / Brexit risk a factor in central bank caution as Fed cools on rate hike Neil Wilson / How long can the gold bull market last? Neil Wilson / EU Referendum: Brexit is not the only risk to financial markets in 2016 Neil Wilson / Does the Fed have room to hike rates in June? Neil Wilson / Mind the GAAP: the perils of trading on earnings releases Neil Wilson / Bayer Just Launched Germany’s Largest Ever Financial Takeover Offer Daniel Sugarman / Five Tech Companies Which Went Stratospheric: And Five Which Collapsed Daniel Sugarman / What we learned from the Federal Reserve minutes Neil Wilson / Forex trading: Five things to watch this week Neil Wilson / Week in review: Regulators flex their muscles Neil Wilson / Forex trading focus: The data driving the euro and ECB Neil Wilson / Gold rally – 5 things to watch Neil Wilson / What are the Currency Wars? Neil Wilson / Non-farm payrolls – how will markets respond? Neil Wilson / What we learned from the Federal Reserve and BoJ Neil Wilson / Does the S&P 500 Golden Cross matter? Neil Wilson / Enhance your trading with Trading Central Neil Wilson / Fed and BoJ in focus for forex trading Neil Wilson / Banks’ earnings beats highlight risks of trading results Neil Wilson / The Brazilian Political Crisis and the Brazilian Markets Daniel Sugarman / Earnings season: Microsoft v. Google in clash of the tech titans Neil Wilson / Earnings season: Five stocks to watch Neil Wilson / Will OPEC’s Doha meeting lead to an oil output freeze? Neil Wilson / Trading tips: What are the best CFD trading indicators? Neil Wilson / Forex trends: Why is the yen strengthening after NIRP? Neil Wilson / ETX Capital’s New Trader Sentiment Mapper Has Arrived Daniel Sugarman / Earnings season: What to expect from Wall Street after a bumpy Q1 Neil Wilson / The Week Ahead with ETX Capital: Monday April 4th – Friday April 8th Daniel Sugarman / Easter 2016 Trading Times Matthew Piggin / ETX Capital Daylight Savings Changes: Sunday 13th March – Friday 25th March 2016 Matthew Piggin / HSBC Headquarter Review – The Bank is Staying in London Daniel Sugarman / Cloud Computing – Big Business for Big Companies Daniel Sugarman / Saudi Arabia & Iran: OPEC & Oil Prices Daniel Sugarman / Are Movie Studios Beginning to Wake Up to the Threat of Netflix? Daniel Sugarman / US Interest Rate Rises – Will They Happen Sooner, or Later? Dan Fitch / Apple Expands its Services as Some Hardware Sales Slow Dan Fitch / Countdown to the US Election – Economic Policies & the Stock Market Dan Fitch

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