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Risk warning: Contracts for difference (“CFDs”), are financial instruments which carry a high risk of losing all invested capital due to the fact that they are complex financial products. Trading in CFDs, includes trading with leverage and can lead to the loss of all balance held within your trading account fast. Please keep in mind that leverage in such financial instruments may be advantageous or detrimental. Also, it is crucial to know that a contract for difference gives no right of ownership to the underlying assets. Past performance is not a reliable source for future results and forecasts do not constitute a reliable indicator of future performance. It is essential to know that trading in CFDs is not appropriate for all investors and prior deciding to trade, you should thoroughly consider whether your level of experience, investment objectives and risk tolerance is able to endure the high risk of trading. In no event you should deposit more funds than you are prepared to lose. You should ensure that you understand all risks associated with trading in CFDs and seek independent advice, if necessary. Please read our Risk Disclosure document.

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Regional Restrictions:  FAIRMONT FINANCIAL SERVICES (PTY) LTD does not offer services within the European Economic Area as well as in certain other jurisdictions such as the South Africa, USA, British Columbia, Canada and some other regions.

FAIRMONT FINANCIAL SERVICES (PTY) LTD is NOT a financial adviser and does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of any financial product.

Commodities

Commodity Trading

Benefits of Commodity Trading with VestoFX

  • 10+ top commodities
  • Trade on contracts without owning the instrument
  • Investment portfolio diversification
  • No hidden commissions

Trade 5 global asset groups & 300+ individual CFD financial instruments. Discover Forex, Commodities (Precious Metals & Energies), Stocks and Cryptocurrencies at VestoFX.

 

What is Commodity Trading?

CFD, or Contract for Difference, trading in the context of commodities is a method of predicting the price movement of various commodities without actually owning the physical goods. This financial derivative allows traders to make predictions on the rising or falling prices of globally traded commodities like oil, gold, or agricultural products.

Key points about CFD Commodity trading

No Physical Ownership: Unlike traditional commodity trading, CFDs do not involve the actual buying or selling of physical goods. It’s purely a financial contract between the trader and the broker based on price movements.

Predicting Price Movements: Traders predict whether the price of a commodity will rise or fall. They open a buy position (going long) if they anticipate a price increase, or a sell position (going short) if they expect a price drop on that particular instrument.

Leverage and Margin: CFDs are leveraged products, meaning traders can open a position on a commodity by depositing only a fraction of the full value of the trade. This leverage can magnify both profits and losses.

Profit and Loss Calculation: The profit or loss is determined by the difference between the price at which the CFD is bought and the price at which it is sold, multiplied by the number of units.

Risks and Considerations: CFD trading involves significant risk due to market volatility and leverage. It requires an understanding of the market and careful risk management.

CFD commodity trading is popular among traders who wish to predict commodity prices without the complexities of traditional futures trading.

Risk Warning

Trading in CFDs carry a high level of risk to your capital due to the volatility of the underlying market. These products may not be suitable for all investors. Therefore, you should ensure that you understand the risks and seek advice from an independent and suitably licensed financial advisor.

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