Commodities – Austin Pips

Commodities Trading

Commodities trading involves the buying and selling of various physical assets, including energy products, metals, oil, gas, and agricultural goods.

Trade Commodities With Austin Pips

Trading commodity CFDs (Contracts for Difference) is an effective way to diversify your investment portfolio and manage risk. Austin Pips provides a seamless commodities trading experience, offering access to a broad selection of global financial instruments.

Take advantage of real-time technology, competitive pricing, and a wide range of commodities. With Austin Pips, you gain access to global commodity markets with high-speed execution, low slippage, deep liquidity, and tight spreads.

Trade CFDs on popular commodities such as gold (XAU), silver (XAG), and oil (CL, WTI)—all through a regulated broker. Our platform offers access to multiple asset classes, advanced risk management features, and powerful trading tools to support your strategy.

What are the benefits of commodities trading?

Leverage up to 500:1 for greater trading potential
Choose from a wide range of commodities, including energy, metals, and agricultural products
Enjoy the flexibility to enter and exit trades 24/5
Trade in any direction—buy to go long or sell to go short, maximizing opportunities and minimizing risks
No price manipulation, ensuring a fair trading environment
Hedge risks with high-value assets like gold (XAU), silver (XAG), and oil (WTI/CL)
Benefit from low margin, low-cost trading without compromising execution speed or quality

The Top Ten Commodities to Trade

Commodities are the fundamental raw materials used in the production of goods—the building blocks of the global economy. As a result, they often serve as an excellent investment opportunity. Commodities are generally divided into two broad categories: hard commodities and soft commodities.

Hard commodities are natural resources that are mined or extracted, such as metals like gold, silver, and iron, as well as energy resources like oil, natural gas, and coal. Soft commodities, on the other hand, are agricultural products like livestock and crops.

The commodity markets are popular among traders due to their high volatility, which presents increased opportunities for profit. What makes commodities unique is their standardisation and interchangeability, with values determined by the relevant commodity exchanges.

However, it’s important to note that not all commodities are created equal when it comes to trading.

Some are better than others. With a wide range of commodities on the market, it’s important to know what makes a commodity good for trading.

Crude Oil
Gold
Silver
Platinum and Palladium
Base Metals: Copper, Iron, Steel, Aluminium
Coffee
Natural Gas
Soya Beans
Corn
Wheat

What Makes a Good Trading Commodity?

When trading commodities, liquidity is the key factor to consider. Liquidity determines how easily you can buy or sell a commodity in the market. A highly liquid market is typically associated with lower risk, as there will be a greater chance of finding a buyer or seller at any given time. A well-established market for a commodity ensures there are consistent buyers and sellers, which increases market efficiency.

High liquidity also reduces the risk of slippage, which occurs when the bid-offer spread is too wide. This is particularly common in markets with lower liquidity, where price fluctuations can cause unexpected losses. Liquidity plays a crucial role in distinguishing the most-traded commodities from those with less market activity.

What is the Best Platform to Commodities?

Austin Pips App. The world’s most popular trading platform.

Discover the benefits of commodities trading on one of the most advanced platforms available —Austin Pips). Whether you’re using desktop or mobile, Austin Pips is built for performance, offering powerful tools and features for a seamless trading experience.

Spreads from 0.0 pips and leverage up to 500:1
Fully customisable interface, including indicator color schemes
One-click trading for fast execution
MarketWatch for real-time market data
Live price streaming on both Live and Demo accounts
Support for Expert Advisors (EAs) for automated strategies
Customisable alerts to stay updated on market moves

6 Reason to choose Austin Pips

Austin Pips The world’s most popular trading platform.

Regulated and Reliable

Enhance your trading confidence with a fully regulated and licensed global forex broker, recognized for excellence and reliability.

Powerful Trading Platforms

Trade smarter with access to advanced, user-friendly platforms including Austin Pips and more — designed to meet the needs of every trader.

Ultra-Low Latency Execution

Experience real-time market pricing with lightning-fast execution, tight spreads, and minimal slippage, ensuring every trade counts.

Competitive Leverage

Leverage up to 500:1 across 50+ currency pairs, giving you greater exposure and flexibility in the global forex markets.

Deep Liquidity & Tight Spreads

Benefit from access to deep liquidity pools and enjoy consistently tight spreads, even during peak trading hours.

Expert Support & Resources

Get the most out of your trading with multilingual customer support, educational resources, and insights from experienced market professionals.

What is Commodities Trading?

Commodities trading involves the buying and selling of standardized quantities of uniform or near-uniform assets. Some of the most popular commodities include West Texas Intermediate (WTI), Brent Crude Oil (XTI), Gold (XAU), and other precious metals, as well as soft commodities like wheat, coffee, cocoa, and soy. Price movements in these markets are often gradual and are widely viewed as indicators of the broader economic health of the industries that produce and consume them.

Commodity prices are influenced by a wide range of factors beyond traditional market dynamics. These include adverse weather conditions, seasonal changes, natural disasters, and climate-related disruptions. Such variables can cause significant shifts in supply and demand, making commodity markets unique compared to other financial instruments.

Traders engage in commodities trading for speculation or hedging purposes. Speculative trading allows traders to express their views on specific industries, while hedging helps manage risk by taking offsetting positions to protect against potential losses. While hedging can effectively reduce risk, it may also lead to reduced returns, depending on market movements.

Example of Leveraged CFD Commodities Trading

Let’s say you decide to trade a CFD (Contract for Difference) where the underlying asset is XTIUSD—commonly known as Crude Oil. For this example, assume that XTIUSD is currently trading at:

You decide to buy 2,000 barrels of XTIUSD because you believe the price of Crude Oil will rise. With a margin rate of 1%, you’re only required to deposit 1% of the total trade value into your margin account in order to open the position.

Now, in the next hour, the price of XTIUSD moves to 83.10/83.11, resulting in a favorable shift. You decide to close your position by selling at the bid price of USD 83.10, securing a profit on your trade.

Types of Commodities?

Commodities are naturally occurring raw materials or agricultural outputs used in the production of goods and services. As the foundation of the global economy, commodities also hold a key position in the financial markets, offering traders unique opportunities.

Two Main Types of Commodities:

Hard Commodities
Natural resources that are mined or extracted, such as oil, gold, silver, and other metals.
Soft Commodities
Agricultural products or livestock, including items like wheat, coffee, cotton, and cattle.

Categories of Commodities for Trading

For trading purposes, commodities are typically divided into four main categories:

Metals
Includes precious and industrial metals such as gold, silver, platinum, palladium, and copper.
Energy
Key traded products include crude oil and natural gas, along with heating oil, gasoline, and electricity.
Agriculture
Focused on staple crops and produce such as wheat, rice, corn, soybeans, and coffee. This category also includes certain animal-based products.
Livestock and Meat
Covers live cattle, pork, eggs, and other meat-based commodities.