How and why to invest in commodities at OANDA TMS?

Commodities are less correlated with other asset classes, serving as a diversification function for investment portfolios. These markets are characterized by high volatility, offering potential profit opportunities. You can read more about commodities CFDs.

CFD and Forex trading based on leverage are highly risky for your capital, if you invest in this product you may lose some or all of the money you invest. Therefore, CFD and Forex may not be suitable for all investors. Make sure you understand the risks involved and, if necessary, seek independent advice.

There are several ways to invest in commodities. Buying physical gold or silver is a good solution, but the problem arises with storing the metal. Another way is to invest in a financial instrument based on the price of the commodity. These can be futures contracts (where a high level of margin is required) or CFD contracts. Derivative instruments based on their price also allow you to potentially profit from declines in their prices through the possibility of short selling. Check which commodities you can invest in with OANDA TMS.

The prices of commodities and goods mainly depend on supply and demand factors. Currency valuations also impact the commodity market.

When investing in CFDs based on commodities, the costs include the spread and swap fee (overnight financing charge). Learn more about swap points.