Commodities Trading

Commodities trading is a significant part of the history of mankind. Every individual trader is allowed to trade in many well-known commodities called "soft commodities" i.e. soya beans, coffee etc. This is the most interesting commodity market among individuals. These often volatile products are considered good profit-making opportunities.

Axen FX allows every trader to take short or long positions on prices of futures contracts of many commodities, such as: Cocoa, Sugar, Cotton and Coffee

History of Commodities

History tells us that the commodity market does not have its roots in North America more than 150 years ago. Before this the common trend of the North American farmers was that they would bring their crops to market in intention to earn some profits by selling them. But the lack of proper demand and supply indication, often they would bring the exceeds quantity than the requirement of the market. This would result in rotting un-purchased corps in the streets of the market. Like wise, when it was not the coffee season, the items that use coffee as an important ingredient, became very expensive. The only reason behind was lack of supply - means it was not the coffee season and corp was no longer available.

Then the gradual improvements in this system eventually created a central place for North American farmers, shortly after establishing the grain markets in mid-19th century, to sell their corps (known as commodities). This central place was available to control the commodities for both immediate delivery and future delivery. This concept was very much welcomed by farmers because it eventually saved them losing their corps. It also helped them stabilizing prices and supply of their commodities in the off-season.

With the popularity of this concept of the commodity market, the need of standardising the terms of every commodity contract arose in this trading market. This need made futures contracts one of the popular methods of investments among traders.

  • Trade WTI Crude Oil, Brent Crude, Gas Oil, Heating Oil and Natural Gas with us
  • Trade commodities as a hedge against rising or falling prices
  • Get up-to-the-minute news and analysis for commodities
  • Get training and support to better understand commodity trading