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Why Trade Commodities with Plus500? |
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Whether it be gold,silverand other metals, crude oil, energy or other commodities you'll love making your commodity trades with Plus500.
That's because we have one of the most state of the art trading platforms, easy to download user friendly software, 24 hour professional
support, and some of the most competitive trading conditions available on the market.
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Plus500 advantages: |
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Download Plus500 trading system and join the increasing market of commodity trading.
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Welcome Bonus! |
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Click here to download Plus500 and get $20 bonus - no deposit required.
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30% Deposit Bonus! |
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Click here to download Plus500 and get up to 30% bonus on your first deposit.
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No commissions |
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At Plus500, you will not have to pay any commissions or exchange fees to make a trade.
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1:100 leverage |
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Trade on Plus500 with 1:100 leverage! - Deposit $100, trade with $10k
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Multichannel commodities trading |
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Trade all commodities through one, simple interface.
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Innovative, friendly interface |
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New generation of trading software, simple and friendly with focus on the ease of use. Fast, one download, for demo or real commodities trade. Deposit directly through our software.
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Free Real time tools |
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Free - Real-Time Streaming commodity Quotes and Charts for better and more exact trading.
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24h trade and support |
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Plus500 is at your service for 24H commodity trading and support.
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Start trading in less than 5 minutes! |
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Simple registration process: registration and deposits directly through our software. Open a new account and start trading commodity within 5 minutes!
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Numerous funding options |
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Deposit money to your account at your most convenient way; Credit card, Web money, and more.
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Free practice account |
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Start trading commodity only when you ready. Free practice account with no time limit or pressure. This allows you to study the market thoroughly before you trade.
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Commodity Types |
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Energies |
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The first in our list has been very active in recent times. This one features many different products that provide energy to heat and power homes as well as businesses. This includes petroleum, byproducts of petroleum, crude oil, heating oil, propane, natural gas and even coal. In this section of kinds of commodities there is a minimum price that is set by the exchange. There is also a standard contract size, which is the amount covered by the futures contract.
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Grains |
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The next one on the list of commodity types are grains. This includes wheat, oat, corn, rice and soybean. It can also include a lot of other various agricultural products. The Chicago Board of Trade or CBOT is involved with these types quite a bit. These are usually sold as future trades. These types of commodities have a minimum as well, and also a standard contract size.
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Softs |
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Softs include coffee, cocoa, sugar, cotton and orange juice. The most common exchange for these commodities is the Coffee, Sugar and Cocoa Exchange or CSCE. The reason that the oranges themselves are not traded as types is because eighty percent of them are turned into frozen concentrate, so this is what is traded instead. The New York Cotton Exchanges even has the name Frozen Concentrated Orange Juice or FCOJ as one of the things they trade.
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Meat |
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Meat is another type of popular commodity. This includes live cattle, pork bellies and lean hogs. This is primarily exchanged on the Kansas City Board of Trade or KCBT. This is actually where historically, livestock have been traded. The commodity seems to be less volatile than others. A lot of times this particular commodity type is dependent upon grain as well, since the grain feeds most of the livestock.
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Financials |
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The last one of the commodity types we will look at, are known as financials. This type is mentioned here because most trade in futures or options, instead of the actual goods. This means financial commodities are often listed on the same exchanges. This includes United States Treasury Bonds and can be found on the CBOT as well as the S&P 500 Indexes. This exchange also trades stocks as a financial commodity.
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Advantages of commodity trading |
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Commission |
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Buying or selling of future contracts is much more cheaper than trying to sell or buy the actual instrument. For instance, a full size S&P 500 contract is worth around $250,000 and could be transacted for as little as $20. The actual expense of buying/selling $125,000 worth of asset can amount to more than $2500+.
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You can go short |
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A speculator can profit from bullish as well as bearish markets.
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Liquidity |
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Because of the existence of speculators in the Futures market, Futures contracts are practically liquid. Nevertheless, the liquidity depends very much on the actual Futures contract being traded. Contracts like the E-Minis which are traded electronically are the most liquid. Agricultural Commodities like corn, soya etc which are traded in the pits are not available outright to the retail trader and are also more costly to transact in with regards to commission and spread.
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No cut-offs |
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Options are subjected to time decay because as they inch closer to expiry, there is less time there for the option to be realized monetarily. Whereas with commodity Futures, they do not suffer from time decay as they are not expecting a particular strike price at expiry.
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Leverage |
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Commodity futures works on margin, which implies that to take a position only a small portion of the total value of the Futures contract is required to be paid in cash into the trading account.
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