Are commodities CFDs a good investment?

Commodity CFDs are similar to CFDs in other asset classes. They share features such as leverage margin and have similar trading fees. CFD commodities trading also carry the double-edged sword of profit and loss. While you can potentially make profits in both bull or bear markets using CFDs, there is also a higher risk of losing your capital.

Should you buy or sell a CFD?

CFD traders may bet on the price moving up or downward. Traders who expect an upward movement in price will buy the CFD, while those who see the opposite downward movement will sell an opening position. Should the buyer of a CFD see the asset's price rise, they will offer their holding for sale.

What is a commodity ETF?

Commodity ETFs are another tool for a more hands-off approach to commodity trading, entering a commodity ETF means you buy a fund that buys the commodities or collection of commodities, that will be managed by a professional fund manager, allowing you to use a more hands-off approach.