Many service providers offer the benefit of Commodity trading for all the retail clients. As a result, the clients get provision to trade in commodities using futures and options. These include the deals related to agriculture, oil and gas along with base materials that are available for trading through commodities.
Therefore, while trading in commodities on the platforms it is important to understand that the selected organization must be registered with the right service providers.
Advantage of Commodity trading through Am broker
Using the service providers like Am broker means that you have access to in-depth research reports and real time updates on the market and its movements. This helps you to take appropriate actions and make profitable investments.
The platform comes with a host of services which when combined with the right technical support helps you to gain access to the best results.
Many market participants including traders, investors, hedgers, importers, etc. trade using the Am broker website.
Apart from this, you can enjoy a host of other advantages as well –
- Diversification of portfolio
- Every order executed within 0.004 seconds
- Price discovery
- Minimum lot size of 0.1
- A leverage of 1:500
- Provision of short selling
- Trading and investment at nominal rates
- Zero-dollar commission per trade
Other benefits of Commodity trading
Using the service providers like Am broker, you can make the maximum benefits like –
- Buying or selling of future contracts is cheaper than selling of the actual instrument. As a result, you merely pay $0 commission on the final trade. This makes Am broker an effective platform
- You can go short i.e. make profit from bullish and bearish markets using the right strategy.
- Due to existence of speculators in the futures market, these contracts are extremely liquid. Agricultural commodities like corn and cotton are traded in the pits and are not available outright to the retail traders and may be costly to transact in.
- Similarly, options are subjected to time decay as these are close to expiry and very less time is present to realize them monetarily. On the other hand, the futures do not suffer from time decay as these are not expecting a strike price
- Another advantage of trading Commodity through Am broker is that the leverage value is high and works on margin. This means that an exceedingly small amount is to be paid in cash.