Commodities Trading with Gccmarkets

Diversifying your Portfolio

With commodities, you can diversify your strategy and manage risk. The more asset classes you include into your trading strategy as a whole, the more hedging and risk management strategies can be employed. Commodities are classic assets to combine into any trading portfolio.

Correlation-Based Strategies

There are clear statistical correlations between commodities and other assets, and strategies based on these correlations help to boost profits and cushion risk. For example, the relationship between CAD and oil. Being a major oil producer, Canada’s currency tends to rise when oil prices do.

Higher Growth Opportunities

Commodities tend to be more volatile than other asset classes, with large swings and movements alongside geopolitical events. This creates significant opportunities for traders to capitalize on larger moves, yet it should be noted that larger swings also represent an elevated level of risk.