TOP 10 FOREX COMMODITIES LIST
A commodity is a raw material that can be bought, sold, or used to produce another material.Commodities are used as material in the production of goods or services. There is huge list of Coommodities List. In this article, we will discuss list of the top 10 forex commodities. liST of most traded forex commodities are: 1. Energy (oil, gas ) 2. Metals (Gold, Silver) How to trade commodities Futures contracts are typically used for the selling and purchase of commodities. There are two groups of traders who deal in commodity futures. The first group consists of commodity producers and purchasers. They utilize commodity futures contracts as a hedge against potential price fluctuations. When the futures contract expires, these traders will either produce the actual commodity or accept delivery of it. The second category of commodity traders includes the speculators. Commodity markets have extremely fluctuating prices. These traders only participate in the commodities markets to take advantage of the market’s volatility. When the futures contract expires, these traders might never plan to produce the actual commodity or accept delivery of it. Commodities futures Commodities futures are the contracts through which a trader agrees to buy or sell a specific commodity at a specific price at a specific date. The Workings of a Commodity Futures ContractWhen a commodity futures contract expires, it is typically closed out or netted. Cash settlement applies to the price differential between the opening trade and the closing trade. Usually, one uses commodity futures to speculate on an underlying asset. Typical resources consist of: Contracts for commodities futures are named by the month in which they expire; for example, a contract expiring in September is referred to as a September futures contract. There can be a considerable degree of price volatility or changes for certain commodities. Significant profits as well as significant losses are therefore possible. LIST OF TOP 10 MOST TRADED COMMODITIES It is difficult to determine the trading volume of commodities because they are traded on numerous exchanges across the globe with varied ticker symbols and contract parameters. Moreover, a lot of commodity transactions take place in private agreements over the counter. The top 10 commodities traded globally are listed below. ENERGY COMMODITIES When it comes to traded contracts and turnover, the energy commodities market is by far the largest. Although there are many different kinds of energy commodities that can be traded, the most traded commodity is black gold. While WTI is mostly traded on the CME (Chicago Mercantile Exchange), Brent crude oil is primarily traded on the ICE (Intercontinental Exchange). Compared to WTI, which is in competition, Brent crude oil production is more scalable. Production is limited by a number of logistical challenges when WTI is drilled and stored underground. 1. BRENT CRUDE OIL The first major and commodity of forex commodities list is Brent crude oil. It is extracted from the North Sea and comprises almost two-thirds of the global oil.It is expensive as compared to WTI crude oil. The difference between the prices of Brent and WTI is called the Brent/WTI spread. It changes because of their different supply factors. Some salient features of Brent crude oil are: 1.It is light and sweet.Sweat due to low sulphur content and light due to low density. 2. Due to its lightness and sweetness it is easy to refine. 2. West Texas Intermediate crude oil Another most traded forex commodity is WTI.It is drilled in various US states especially Texas.It is also sweet and light.Its sulphur content and density is even lower than that of Brent crude oil. 3.Natural Gas Natural gas is an important source of energy.It is third – most traded commodity in the world.It is used for heating , cooking and electricity generation. Its trading volume depends on weather conditions,storage conditions and global demand METALS 1.Gold Gold is one of the most traded precious metal in the world.It has been favourit among traders and investors due to its safe haven asset quality agains inflation and theft. God is primarily used in jewellary making and as a source of investment in trading. Gold is mostly mined in China, Australia and USA. According to begginer traders the Gold is very dangerous coomodity of forex commodities list. If you want to take Free Signals of Gold then join us on Youtube 2.Silver Silver is another precious metal ,which is used by mankind for diffent purposes.It is also one of the most traded commodities in the world.Unlike gold it is mostly used in industries to make diffent things like electrical appliances 3.Copper Copper is very important metal in the modern world because it is an excellent conductor of heat and electricity.It is also widely used in electronics and building materials. Most of this metal is produced in Chile.Small amounts are also produced in Peru, China and US.Copper is one of the most traded commodities due to its use in different industries. Agricultural commodities 1.Cotton A large amount of cotton produced in the world is used to make clothes.But besides clothing it is also used in many other industries.Cottonseed is used as animal food. Cotton seed ol is used in cooking and also for manufacturing soap rubber and plastic.Most of the cotton is produced in India ,China and US. 2.Sugar Sugar is considered to be a luxury product because of its demand .Therefore it is one of the most traded forex commodities in the world.Sugar is used in drinks and beverages all over the globe.Other uses of sugar are in medical field where it is used to make syrups and medicines.It is made from sugarcane juice. 3.Coffee Coffee is one of the most traded commodities in the world.A survey results show that about 2.25 million cups of coffee are drunk daily all over the world.The main producer of coffe is Brazil.50 countries that produce coffee are known as” coffee belt” Two varieties of coffee are Arabica and robusta. Although , Arabica is considered to be best in quality. 4. Cocoa Cocoa is also one of the
TOP 10 FOREX COMMODITIES LIST Read Post »