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Commodities have been traded physically, i.e. for immediate use, for many years. Commodities are unique in that they actually exist and not just on paper or accounts. Whether it’s an energy source like oil or a precious metal like gold or platinum, commodities exist in the real world and are massively influenced by them. For example, if oil storage facilities are overstocked, prices are likely to fall accordingly as supply increases. Additionally, some commodities are considered “safe havens,” meaning they can add stability to a portfolio made up of highly volatile assets. For example, many forex traders use gold futures when the market gets too volatile because gold prices are generally less volatile. Because commodities are often quoted in US dollars, they are closely linked to the foreign exchange market.
Commodities are only traded as CFDs on eToro, which means you don’t have to buy the underlying asset to trade them. In addition, CFDs allow for short (selling) positions, leveraged trades and fractional ownership – even for assets where these options are not offered in traditional trading. For example, you can invest as little as $50 in gold on eToro, even if a single unit of gold costs $1,000.
Some of our most popular commodities include: