How to start trading Commodity CFDs (Metals and Oils) on FBS?
What are precious metals?
In the Forex market, precious metals are gold, silver, platinum and palladium. Gold is definitely the most attractive and most traded. However, other metals, especially silver, show that they can also be very volatile, and therefore, provide a lot of trading opportunities. Potentially, incorporating metals into your portfolio may not only diversify it but also increase its long-term profitability.
There are certain factors that make trading precious metals and especially gold very attractive. The main factor is the predictability of gold price fundamentals based on the inverse relationship with global economic trends. If things go bad, investors seek refuge in gold – and the price goes up. If the global economy improves and the mood is upbeat, traders will take more risks – gold will usually slide down. That’s why the 2020 coronavirus crisis saw gold hit an all-time high above $2000!
Click the ‘Open an account’ button on FBS’s Official Website and proceed to the Personal Area. Before you start trading, first complete the profile verification process. Confirm your email address and phone number, and verify your ID. This procedure aims to ensure the safety of your funds and identity. After you have completed this procedure, please log in to the platform of your choice, and start trading.
FBS offers various account types designed to meet your needs, including Cent, Micro, Standard, Zero Spread, and ECN accounts with their own unique trading conditions. For novice traders with no experience, we recommend opening a demo account first and then opening a Micro or Cent account. For those of you who already have experience, we recommend opening a Standard account – a classic account type. And for true professionals, we recommend Zero Spread accounts or ECN accounts.
Technically, you trade oil in the same way as any other asset. Basically, you need to understand the drivers of the oil market. First, what needs to be understood is global oil demand. Regular OPEC meetings explain this so you just have to follow their announcements. Second, is the geopolitical agreement – you won’t miss it because political events like the Russia-Saudi Arabia dispute or the US are covered extensively in the media. As for market sentiment as well, technical analysis also applies here.
Crude oil is the main commodity of the energy sector. This is more than the resource that allows us to own kerosene, gasoline and other chemical components – it is a geopolitical asset. That’s why the price fluctuates greatly due to various factors, and potentially provides a lot of investment and trading opportunities. You can trade two major brands of crude oil with FBS: WTI and Brent.