Commodity Trading in Australia
Instruments that affect national currencies and the prospects of mining and agricultural companies around the world are the rates at which core commodities, such as rice, gold, beef, oil and iron can sell on the global market. Most of the commodities that are tracked are essential products for ensuring human survival, with building goods, food, drink, energy and currency being primary.
Due to their essential nature and broad supply base, commodity products tend to be low-margin items whose prices fluctuate within a limited range in line with increases or dips in global demand. For this reason, they are uniquely attractive both to short-term traders who want to benefit from daily swings, and are nevertheless seen as a safe haven or retreat for longer term investors to help guard against fluctuations in the property or share markets.
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