Commodity trading has been an important aspect of the global economy for centuries, and – with its user-friendly interface and sophisticated trading tools – T4Trade is well-positioned to lead the charge in commodity trading in the future.
Commodities are defined as raw materials or agricultural products used to manufacture finished goods. There are many different types of commodities available today, and they are broadly split into three distinct categories: agriculture, metals and energy.
Commodities investing can provide diversification to a portfolio and excess positive returns. When shareholders’ investments track only a single commodity or sector of the economy, they may experience volatility. Commodity futures, stocks, ETFs and mutual funds are all options for investors, as are physical commodities like gold bullion.
Electric vehicles (EVs) have a promising future too; the sector is expected to grow at an exponential rate over the next 20 years.
The three future overarching themes in commodities markets are the Chinese property market, the Ukrainian war and the global transition to net zero.
So, what can traders anticipate from commodity trading in the future? Here are some trends to keep an eye on.
Increased Use of Technology
Technology is revolutionising commodity trading. Commodity trading is becoming safer, more transparent and more efficient as blockchain technology advances. Using sophisticated trading tools such as the MetaTrader 4 platform enables traders to make informed trading decisions based on real-time market data.
Greater Focus on Sustainability
There has recently been a desire for sustainable commodities. Early adopters of various innovative sustainable technologies are rapidly scaling up, forming value-chain coalitions and attracting capital on favourable terms.
Emerging Market Opportunities
Commodity prices are set to rise in the 2020s because of easy money, reduced supply and increased demand. This is encouraging news for many emerging economies that rely on commodity exports.
Integration of Artificial Intelligence
Artificial intelligence is increasingly being used to improve forecasting and risk management in commodity trading. By analysing market data and identifying trends, AI-powered tools can assist traders in making more informed choices.
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Disclaimer: This material is for general informational & educational purposes only and should not be considered investment advice or an investment recommendation. T4Trade is not responsible for any data provided by third parties referenced or hyperlinked in this communication.
