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COMMODITIES TRADING

Commodities trading is an ideal way to diversify your investment portfolio and is becoming increasingly popular due to the potential for high returns on investment. A commodity is defined as any product which has a commercial value and can be traded on an authorized commodity exchange. Following the financial crisis of 2008, gold and crude oil trading saw huge growth as investors sought security of these precious resources over paper money. With recent gold and oil price increases, the profit potential for commodities has been growing significantly.

Tadawul FX offers gold (spot), silver (spot) and crude oil (futures) commodities trading. Gold and silver are traded in exactly the same way as pure currency pairs with no physical purchase or sale of the material. Their main counter currency is the US Dollar.

Trading hours are 24 hours a day, five days a week, but liquidity varies strongly between the different time zones. Trading conditions are best from 9:00 GMT onwards when markets in London open up, until 22:00 GMT when traders in New York close the exchanges. Outside of this time-frame, execution remains possible, but can be thin, limited or non existent. The energy market opens on Sunday 22:00 GMT and closes on Friday 20:30 GMT. There is a daily closing for 45 minutes from 21:15 to 22:00 GMT.

WHY TRADE COMMODITIES WITH TDFX?

Fees: Trade fee free, commission free, also for spot metals trading no charges.

Spot and Futures commodities: Trade metals and energies via futures contracts (crude oil) as well as spot (silver and gold).

Metals - Gold: Due to its rarity and unique industrial and high tech uses, gold trading has always been a favourite amongst investors. Gold is considered a safe haven in times of economic, geopolitical and financial instability, and holds its value which is particularly valuable during inflation and USD devaluation.

Metals - Silver: Silver trading is a highly volatile tradable commodity offering interesting investment opportunities for traders.

Energy - Crude oil: The West Texas Intermediate (WTI), also known as “light, sweet” is a type of crude oil that is used as a benchmark in oil pricing due to its high quality (light weight and low sulphur content). WTI crude oil future contracts are the most popular oil contracts traded on the commodities market and due to the volatile nature of crude oil can offer huge potential for profit.

Leverage: Within one click, you can buy or sell commodities 24 hours a day and benefit from unbeatable leverage of 1:1 to 1:500 (up to 1% margin). The use of leverage allows investors to enter and trade on the commodities market with very little capital.

Technology: Our user friendly multi-product MT4 Trading platform allows you to trade forex, commodities, and CFD’s from the same account. With easy 1 click execution, commodities can be bought or sold at competitive and real-time prices.

Regulations: Feel safe and secure trading with TDFX. We are a licensed and regulated investment firm, always following the best practices and procedures. Clients’ funds are kept in segregated accounts and are also safeguarded through a compensation fund.

Important: Your risk when trading commodities
Commodities trading with leverage can lead to high profits, but may also lead to substantial losses. When buying a commodity futures contract, your risk is in theory limited to the commodity’s price becoming zero which is unlikely. During sale, risk is unlimited since a commodity price has no actual limit. However through the use of offsetting positions during market movements and placing stop loss orders which Tadawul FX allows, you can limit the potential losses during commodities trading. See our complete General Risk Disclosure for more information.