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What is simple commodities trading?

Simple commodities trading is the buying and selling of stocks of raw materials and involves the physical trading of goods. CFDs (Contracts for Difference) allow traders to speculate on the way the price of a commodity will change, without ever owning the commodity itself. A CFD is a contract between a trader and a broker.

What is commodity trading?

Commodity trading refers to the buying and selling of physical commodities or commodity derivatives in financial markets.

Can a product be traded as a commodity?

If a product is not fungible – for instance, clothing or technology – then it cannot be traded as a commodity. Commodities come in two broad variations: soft and hard. Soft commodities are grown or bred for human or animal consumption.

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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