In Forex you can trade not only currency, but also the raw material. A raw material is a raw material necessary to generate new goods, whose production in the form of the final product takes place by means of specific processing. In FX, the raw material is interchangeable with another product of the same type, which can be bought and sold among investors. These exchanges take place mainly in the commodity exchange, the instrument through which it is advisable to expand Forex itself.
Commodities
The raw materials on Forex are many and varied types, which is why it was necessary to make some classifications, in particular distinguishing between raw materials soft and hard materials. The first comprising all products from agriculture (corn, coffee, palm oil, sugar and cocoa) while the latter include extractable materials and their derivatives (generally oil, natural gas and metals). The most common hard materials in forex trading are oil, gold, platinum, palladium, silver and copper. If the effective currency trading involves the knowledge of dynamic technical details, the efficient commodities trading requires a solid foundation of knowledge and financial policy.
Be updated with news and markets
The fluctuation in the price of oil, gold and silver are due to the policies adopted by the cartels and the economic enterprise of the geographical areas concerned. It 'important to stay updated on the social and political development of producer countries and take advantage of the rapid fluctuation or surges of demand and supply. The principle of gain remains always the same: resell material at a price higher than that of purchase.
