Commodities is another form of financial instrument that you can trade at First Index. Commodities trading gives you the opportunity to trade the primary products we use everyday, as well as the minerals, resources and other products that underpin our economy.
Commodities can be related to food, energy, metals which makes them the basics for the building blocks of the global economy. There are 2 types of commodities, soft and hard. Hard commodities are for example gold, silver and platinum, they tend to have a longer shelf life. Whereas soft commodities such as rice, soybean and corn have a limited shelf life and are agricultural goods. Therefore, the commodity from one country will be available in exact quantity and amounts of another.
Trading commodities as a contract for difference (CFD) allows themselves to be traded without ever physically owning the underlying physical asset. They are traded on several exchanges that specialise in these markets. Hence, several factors affect the commodities market: Seasonality, natural disasters, economic and political events as well as the supply and demand. These factors play a role in the fluctuations of the underlying commodity asset price as it allows traders to hedge accordingly against these events which is the main driver for the commodities market.
A Cryptocurrency is a type of asset that does not exist in the form of literal currency such as AUD/USD but is rather exchanged digitally between buyers and sellers using encryption for security through the blockchain network.
Which is a digital decentralised public ledger for all transactions, overall having the same value internationally and in every single country.
Originally created to process accounting methods for virtual online currencies to validate transactions. Through First Index it can be traded like a CFD through our platform choosing to long/buy or short/sell, overall this means you can benefit from the gain or drop of a cryptocurrency through our platform.