Courses > Commodities > Beginner Commodities Tutorial
How do you trade Commodity CFDs?
Trading Commodity CFDs involves speculating on the price movements of various commodities without owning the physical assets. By using CFDs (Contracts for Difference), traders can profit from fluctuations in commodity prices without the need to hold the actual commodities.
To start trading Commodity CFDs, you need to open an account with a broker that offers access to commodity markets through a trading platform.
In Commodity CFD trading, various commodities are represented by specific symbol pairs. For example:
Gold: XAU/USD
Silver: XAG/USD
Crude Oil (WTI): WTI/USD or BRENT/USD
Natural Gas: NATG/USD
When trading Commodity CFDs, you’ll be looking to profit from the difference between the opening and closing prices. For instance, if you believe that gold prices will rise, you would buy (go long) the XAU/USD CFD. Conversely, if you expect gold prices to fall, you would sell (go short) the CFD.
By trading Commodity CFDs, you can take advantage of market movements and utilize leverage to enhance your trading potential, making it essential to have a solid risk management strategy in place.