Forex basics

Commodities Trading Basics

28 August 2025 3 min min read

Commodities trading has been a cornerstone of global markets for centuries, connecting producers and consumers through the buying and selling of raw materials. Today, it remains a powerful opportunity for traders seeking diversification and risk management.

At NAJM Capital, we make it simple to trade commodities online with competitive pricing, advanced platforms, and secure execution. Whether you are interested in energy products, metals, or agricultural goods, our commodity trading brokers give you direct access to global markets.

What is Commodities Trading?

Commodities trading involves buying and selling raw physical goods — such as oil, gold, or wheat — in the financial markets. Instead of owning barrels of oil or physical gold bars, traders speculate on price movements through contracts.

Commodities are typically divided into three groups:

  1. Energy Commodities – Oil, natural gas, and other fuels.
  2. Metals – Gold, silver, platinum, and industrial metals.
  3. Agricultural Commodities – Wheat, coffee, sugar, and more.

👉 Learn more about instruments on our Commodities Trading Page.

Why Trade Commodities?

Traders choose commodities because they:

  • Diversify Portfolios – Reduce reliance on only forex or stocks.
  • Hedge Risk – Use safe-haven assets like gold during market uncertainty.
  • Leverage Volatility – Commodity prices often move with supply-demand shifts and geopolitical events.
  • Global Exposure – Gain access to worldwide markets and seasonal opportunities.

With NAJM Capital, traders benefit from low spreads, leverage up to 500:1, and flexible forex and commodity trading accounts.

How to Trade Commodities

Trading commodities online is straightforward with NAJM Capital:

  1. Open an Account – Choose from Smart, Elite, Premier, or Institutional accounts.
  2. Fund Your Account – Deposit securely using multiple payment options.
  3. Select a Commodity – Trade oil, gold, silver, or agricultural goods.
  4. Decide Buy or Sell – Go long if you expect prices to rise, or short if you expect them to fall.
  5. Apply Risk Management – Use stop-loss and take-profit features on our platform.

Compare accounts on our Account Comparison Page.

Commodities Markets and Factors

Commodity prices are influenced by:

  • Supply and Demand – Seasonal harvests or production changes impact agricultural commodities.
  • Geopolitical Events – Oil and gas often react strongly to global conflicts.
  • Economic Indicators – Inflation and industrial demand influence metals like gold and silver.
  • Currency Strength – Commodities priced in USD move with the dollar’s value.

Understanding these factors helps traders make informed decisions using our forex trading economic calendar.

Strategies for Commodities Trading

  1. Trend Following – Trade based on long-term supply-demand trends.
  2. Range Trading – Identify key support and resistance levels in commodity charts.
  3. News Trading – React to reports on inventories, harvest yields, or OPEC decisions.
  4. Hedging – Balance portfolios by holding commodities alongside forex or shares.

Platforms for Commodity Trading

At NAJM Capital, you can access commodities on:

  • MetaTrader 5 (MT5) – Recognized as one of the best forex and commodity trading platforms, offering advanced charts, automation, and multi-asset trading.
  • NAJM Capital Proprietary Platform – Designed for simplicity and reliability, especially for MENA traders.

Explore our Platforms Page to see the tools in action.

Risks in Commodities Trading

While commodities can offer diversification, risks include:

  • High Volatility – Price shocks can occur suddenly due to global events.
  • Leverage Exposure – Magnifies both profits and losses.
  • Market Specific Risks – Weather affects agriculture, while OPEC decisions affect energy.

NAJM Capital equips clients with tools and education to manage these risks responsibly.

Conclusion

Commodities trading provides unique opportunities to diversify, hedge, and profit from global market shifts. At NAJM Capital, we combine competitive spreads, flexible accounts, and trusted platforms to support traders of all levels.

Ready to begin? Start Commodities Trading with NAJM Capital today and unlock access to energy, metals, and agricultural markets worldwide.


Sign up and start trading now

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