To trade commodities on eToro, open the eToro platform, go to "Discover," and select "Commodities." Pick the commodity you want to trade, such as gold or oil, and choose either "Buy" or "Sell." Configure your investment settings in line with your trading strategy, then click "Open Trade" to start your transaction.
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
If trading eToro commodities sounds complicated or hard to you, let me assure you that it's actually a very basic process. You just need to know the basics and the steps to take to invest on this very liquid market. In fact, you don't even need to physically own one to trade this financial instrument. Here's a concise guide, based on my personal experience, with some helpful information to enhance your commodity trading experience with this broker.
In commodity trading on eToro, you engage in Contracts for Difference (CFDs) rather than buying or selling physical commodities. This method allows you to speculate on commodity price movements without owning the actual commodities.
Traditional commodity trading involves buying or selling physical goods like gold, oil, or agricultural products. In contrast, a CFD is a financial derivative that lets you speculate on the price changes of a commodity, without the need for physical ownership. When you trade commodities on eToro, you're entering a CFD contract, where your profit or loss is determined by the price difference from when the contract is opened to when it's closed.
CFD trading offers the advantage of profiting from price movements without the complexities of owning or delivering the actual asset. However, it's crucial to be aware of the risks, including the possibility of losing your investment. Employing risk management strategies, such as stop-loss orders, is essential to mitigate potential losses.
Prior to diving into commodity trading with this broker, consider a few essential steps for a smooth experience:
Initiating commodity CFD trades on eToro is user-friendly. Follow these steps:
That's all there is to it! In just a few easy steps, you can begin trading a variety of commodities on this platform. Keep in mind the essential tips outlined in this guide to enhance your trading skills and knowledge. And always remember to apply risk management when investing on these financial instruments, especially when trading with leverage.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.