Commodities trading platform in South Africa
Trading platform capabilities for trade commodities in South Africa
It is imperative to understand the idea of trading platforms and signals for trading commodities. They rely on software that has been pre-created by professionals, so these platforms can be easily used by anyone interested in any type of Forex trading. This makes them convenient and useful for those new to the trading world. Using a platform like ours for newbies simplifies their work and learning to trade and reduces the losses associated with trading goods.
All goods available for trade can be divided into three main type: agricultural products, metals and energy. It should be noted that trading in commodities is different from the stock market or currency pairs. In it, the correct definition of the future trend is of paramount importance. These assets allow you to get good income from position trading. That is, after analyzing the market, a deal is opened for a long time. As a rule, this is at least a year. In the future, it is possible to open additional trading positions if events develop in the direction favorable for the trader's transactions.
Fortunately, access to investment has been made easier by the introduction of trading platforms that have made it easier to trade commodities. These programs gave investors and traders the ability to easily raise capital and trade commodities.
With the help of the platform, as well as our convenient mobile application, you can invest in goods at any time of the day or night. The platform allows users to buy different types of goods for every taste, perhaps you are more knowledgeable in one area than others and can easily predict future prices. Investing in merchandise online is a fantastic way to diversify your portfolio.
Diversification - expanding the range of investments, that is, increasing the number of objects or assets in which you invest.
By investing in commodities, you can access several types of income opportunities. In the long term, you can use this income opportunity to grow your portfolio and generate consistent returns. For this reason, you need to choose the right platform to invest in commodities.
Most traders use technical analysis to some extent, some occasionally, some constantly, to help themselves make a trading decision. They often practice it on a demo account.
What is technical analysis of the commodity market? The patterns and indicators on the price chart for a specific commodity are considered in order to find out its future direction.
For example, one of the tools that is popular with traders is moving averages, as they help determine the general direction or trend of the market. This line is then displayed on the chart so that the trader can see the trend in the average price. For example, a 5-period MA would be the average closing price over the last 5 days, including the current period. When this indicator is used intraday, the calculation is based on current price data and not on the closing price. MA seeks to smooth out random price movements in order to reveal hidden trends. It is a lagging indicator and is used to track price patterns.
In addition to these indicators on our platform, you can use the MACD. A bullish signal is generated when the MACD is positive. This means an increase in the momentum for the price increase, but as the value starts to decline, it shows a loss of momentum. Likewise, a negative reading indicates a bearish situation, and if it tends to increase further, it indicates an increasing decline. If the negative value decreases, it signals that the downtrend is losing its momentum.
With a demo account, you can practice types of technical analysis as well as other technical analysis tools suitable for you. Any approach will not always be 100% successful. Trading losses are part of the process. That is why investing in commodities without risk through a demo account will help you develop the right trading mindset.
Types of commodities
Typically, there are several types of goods that are more suitable for exchange in international markets. Some of them are presented on our platform. These are gold, silver and oil. These are widely traded commodities that are bought and sold in stock markets around the world on a daily basis. That being said, it is vitally important to have an idea of how to exchange them on a commodity exchange.
What is the essence of investing in goods? If prices start to rise, you can find a seller of a commodity at a bargain price and capitalize on the resale margin, but is it so easy to find a producer or seller of a commodity like oil and store it until resale? And in this situation there is a simple way - it is trading raw materials on the exchange through a broker.
Basically, a trader trades contracts for the future delivery of a commodity. The trader pays for the contract at a fixed price. If the price rises from the moment of purchasing the contract, then upon the expiration of the contract, the trader will make a profit. If the price falls, the trader will lose money.
There are many things that affect the price of each individual item. Huge fluctuations in the prices of goods can occur when there is a shortage or surplus of goods. As a rule, everything that is put up for sale is subject to changes in supply and demand. In addition, it must be remembered that natural disasters and serious political conflicts can lead to dramatic changes in commodity prices.
Most importantly, if you plan to use commodity and energy trading as an investment, you must be well aware of the dangers involved. For example, it is known that the price of oil moves up and down depending on the events in the world. Traders and investors have no control over what happens to the amount of oil. This can lead to a rise or fall in oil prices, depending on government policy, environmental issues, financial problems and a number of other aspects. Investors can also lose their money investing in the commodity market if they get confused and act at random. Therefore, when investing your money, you must always be aware of the latest news in the world in order to react to changes in time.
How to start commodities trading in South Africa?
When you find a commodities trading platform in South Africa, you need to open an account in order to buy anything. Is it possible to open a real demo account.
A demo account for trading commodities will contain $10,000. This is trust money, you cannot get it. This will give you the opportunity to practice trading and learn how to properly understand the industry and use indicators correctly.
You can use the online tools available to check the current commodity rates. As you gain experience in trading, you are more likely to know exactly what the market trends are. Together with the online tools available, you will have the opportunity to know the market trend.
After you have had some success with a demo account, you may want to open a live account. The good news is that the deposit for opening is quite small, only $10. You will be able to try the platform full, this is already a game for real. Of course, you can start with a larger amount, everything depends on you!
You may have to wait awhile for your accounts to be verified, but this is very common. The confirmation process takes some time. When you open a live account, you will be advised that your account has been verified and is currently open.
On our commodities trading platform, you will be able to follow trading news that are very valuable to any trader. Use Japanese candlestick charts and technical analysis indicators to help you make profits. You need to know when trading is going well and when it is bad. You don't want to risk losing money by making bad deals. If you are new to this game, you need to stick to deals that you know a lot about so as not to lose all your money in the first few weeks.
To help you, we have made a training department, where you will get acquainted with training videos about trading, as well as a large block of answers to common questions of traders. Be sure to check it out!
Also, with us, you can use leverage. Leverage, or financial leverage (leverage), is a certain ratio of a trader's own funds (his deposit) to the total amount of money volume that he trades. That is, this is a special financial service provided by a brokerage company in order to lend a certain amount of money to a trader, which will be several times larger than the size of his deposit, so that the client can use it to conclude transactions and increase his income.
When trading commodities, you will come across a type of trading such as CFD contracts. This is a type of bet between two parties in relation to the future value of an individual financial instrument (currency, stock, etc.), in which both parties agree to settle an amount equal to the difference between the opening price and the closing price of the position. Hence, the term “CFD”. In simple words, if you buy such a contract and the price of the underlying instrument rises, you will receive the corresponding difference from the broker who sold it to you. On the other hand, if the price falls, the difference will be taken from your account. You can try this type both on a demo and on a real account.
One of the important considerations to keep in mind when trading the market is that you should always buy when prices are low and sell when prices are high. If you take a position in the market as soon as the market is open, you will not have the advantage of understanding the expansion or decline of the commodity prior to the close of the market during the day. This will mean that you are missing out on the chance to benefit from higher commodity rates.