Commodities can be defined as something physically substantial, such as agricultural products and mining products. Investors or traders can purchase or sell commodities either through futures or spot markets. This instrument is one of a small number of investment instruments, in which participants who have small capital can engage and reap huge profits in a relatively short period of time. Commodities have always been a prima donna instrument for most global investment managers making capital turnover in commodity markets quite competitive.
There are many types of commodities that are traded on the world market. But our focus here is only limited to some of the commodities of gold and oil.
XAU is a gold product based on Loco London Gold, traded on an alternative trading system (ATS), with a contract size of 100 troy ounces or 3,110.35 grams (3.1 kg), and does not require physical delivery.
1. Short selling on bearish market. The market is open 24 hours on weekdays
2. No transport and storage costs
3. Very low spread but high liquidity, with speed of transaction execution in seconds
4. Very low margins, so ROI can increase significantly
5. Performed online through InterPan MetaTrader4
Crude oil is the world's crude oil trading contract based on the NYMEX market, which is traded through the alternative trading system (ATS) on the Exchange, with contracts of 1,000 barrels and 500 barrels, and does not require physical delivery.
1. No transport and storage costs
2. Low spreads
3. High liquidity, with speed of transaction execution in seconds
4. Short selling on the bearish market. The market is open 24 hours on weekdays
5. Low margin, so ROI can increase significantly
6. Performed online with the platform InterPan MetaTrader5