Since its inception, trading goods have always helped people survive economic crises. It dates back to hundreds or thousands of years ago, where individuals bartered various items in exchange for gold or something that’s even less valuable. These items were anything from food products, luxury materials such as jade or silk, to any product that people find useful. Ancient merchants would travel far and wide to exchange whatever object they have available to something that might be useful to them.
Can you imagine a journey of a thousand miles either by land or sea to trade milk for wine? As crazy as it may sound, this idea is what catapulted the success of what we know today as online commodity trading.
What is Commodity Trading?
The use of the internet seems endless; almost anything can be done online these days – from grocery shopping to paying bills and even dating. Who would’ve thought there would come a day when a simple task can be accomplished by clicking a computer mouse or a tap on a smartphone’s screen? And commodity trading is not an exception to this amazing invention. But first, it helps to know what exactly commodity trading is. This type of trading involves buying and selling items that can be considered as a natural resource.
These commodities can be divided into four categories: metals, energy, livestock, and agricultural. A few good examples of energy are crude oil, natural gas, and gasoline. Metals refer to precious metals such as silver, gold, or platinum. Livestock includes cattle or hogs, while agricultural items are things like cocoa, wheat, rice and coffee. Although all of these products are valuable, metals and energy commodities remain to be on top of the trading market.
The Advantages of Online Commodity Trading
Accessibility
Almost everyone is aware of how risky it is to venture into trading, and this is where online commodity trading comes in handy. Inevitably, people in this business, who are also known as commodity traders have smartphones, and online commodity trading is made more accessible through the use of the internet. By having quick access to the market on one’s smartphone, it lessens the risk of missing great opportunities or business decisions that have to be made fast.
Less Expensive
Aside from accessibility, online trading is less expensive as compared to hiring a stockbroker to take care of your trades for you. Also, commodity trading that’s done online incur lower fees. You’re essentially saving while trading.
Flexibility
Another incredible advantage of doing trading online is that it provides more flexibility and a sense of control without having to set appointments with stockbrokers when making a trade.
Real-time Monitoring
Lastly, opting for online trading enables a trader to monitor investments real-time. The trade market must always be closely monitored in case a product’s value goes down and has to be sold immediately to avoid any further loses, or if it’s time to purchase more of the said product as the demand for it goes up.
Conclusion
First-time traders can indeed find online commodity trading to be nerve-wracking, and there’s no blaming them. But great success in commodity trading takes guts, a lot of patience, and the ability to make correct decisions at the right time. Through the help of online tools, these decisions can be made effortlessly, with much less hassle and trouble – convenience and efficiency rolled into one.
