Learning commodities trading: basic principles of successful trade

Because the popularity of exchanges is continually growing, an increasing number of people are wondering whether it is realistic to earn money on them. Those who know how to analyze risk, have sufficient knowledge and little luck, and also have high-stress resistance can make a profit while using the exchange and learning commodities trading.

Learning commodities trading: commodity market as a popular type of exchange

The exchange is quite capable of replacing a trader with several areas of life at once: work, hobby, and gambling.

  • There are several types of exchanges:
  • сurrency exchanges;
  • commodity exchanges;

markets of derivative financial instruments – futures, options, and others.

Commodity exchanges are useful both for the starters and for experienced traders.

Learning commodities trading all over the world

Among the international exchanges for commodity trading, the most popular can be called Forex. Here, foreign currency is traded in non-cash form, as well as other assets. In more detail about what Forex is and how to make money on it, you can find out in practical guidance for trading.

Popular exchanges in Russia

In Russia today, there are several stock exchanges for learning commodities trading. The Moscow Exchange, which was formed in 2011 after the merger of the MICEX and the RTS, is the most popular and stable among them. Here, the basics of operations are carried out with stocks, as well as derivative financial instruments on them and the index (options and futures).

Brief description of the process

In futures trading, the exchange acts as an intermediary between the seller and the buyer. Bidders submit their bids for the operation. After that, all offers are processed on the exchange, and the players are brought together.

The choice of commodity exchange

Before you start trading commodity futures, you must necessarily select a market and exchange.

Moreover, they are based on the following main criteria:

  • assets sold;
  • location;
  • risk level;
  • leverage.

When the exchange is selected, it is necessary to open an account and to choose a broker that allows you to interact with it.

Choice of a brokerage company

While choosing a brokerage company for commodities trading, you should estimate it according to several critical criteria. Among them are the following qualities of a brokerage company:

  • reliability of futures contracts;
  • prestige;
  • convenience and quality of cooperation with a broker.

When an intermediary is selected, you can start trading.

Useful tips for successful; start

First of all, it is necessary to analyze the situation on the market while trading commodities and make a forecast for the movement of the asset. Further, using the Internet, you can place orders, open and closed positions, focusing on the estimates received during the analysis of prices and current situation with the commodities.

Modernization of commodities trading

With the development of information technology, the appearance of exchanges has changed dramatically. Previously, traders gathered in one large building to complete trading operations. Trading on the exchange was carried out by personal contact.

Online trading

Today there is no such need. Anyone can learn trading without leaving home. It is enough to have a computer and Internet access to do this. Proper education will help the starters to build successful careers in trading.

Valuable possibilities

At the same time, online trading on the stock exchanges and Forex suggests the possibility of an operational study of all types of news, as well as the use of new analytics from experts. This provides invaluable support to market participants with any experience – from beginner to professional.

How not to make a mistake

When choosing a commodity exchange broker for a futures contract, you should not research only reviews about him. It is important to remember that points of view of third parties are mostly negative. Many newcomers are not serious about business on the exchange; they quickly drain their deposits. Naturally, they blame the brokerage company for this.


Instead of studying reviews, it is better to analyze the licenses available at the brokerage company and to compare the price of services. It is also necessary to consider where the broker is registered, how legitimate its functioning is, the broker’s attitude to the privacy policy. Thus, choosing a broker is not an easy task. However, it is better to spend a little time on it than to regret the lost money in the future.

Posted: 2.07.2020 | Ludmiła Gorodnichenko
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