Commodities trade involves staking on how the price of a commodity will move. When people anticipate the prices will go up, they buy futures (long positions). When they think the price will go down, they sell futures (short positions).

Even though you can opt to purchase the physical commodity and sell it on your own, it is more common to find people trading futures contracts. The contracts have specifications on delivery dates, prices, and quantities, among other rules. Significant manufacturers and large-scale consumers often trade global commodities for risk management to shelter themselves from price fluctuations.

Trading commodities on the internet has attracted many investors to the venture recently. There is increased convenience and ease of transacting compared to traditional commodities trading. When they trade commodities online, investors do not need to contact a broker at the bourse to place an order. Everything you need as a trader is readily available in an accessible online trading account.