EQUITY
A commodity broker is an individual broker or brokerage firm that handles commodity trades on behalf of its clients.
Whether you're making trades online or over the phone, your commodity broker is essential for getting trades done efficiently. Learn more about what commodity brokers do and how they can help you make your trades.Commodity brokers facilitate trading in the commodity markets for the average investor. Aside from owning a seat on an exchange and trading in the commodity pits, most people have to trade
through a broker.
Online Commodity Trading
A client trading online will log into their broker's trading platform. They will select the market they want to trade along with the type of order, price, and quantity. This is all done with a couple of clicks of the mouse. When the order looks good, the trader will hit the "Buy" or "Sell" button to send the order through. The order is routed instantly to the exchange’s trading platform and matched with other similar orders. A market order is filled instantly in most cases, and the trader receives a confirmation on their computer within a second or two.Online trading is much quicker, cheaper, and more efficient. But you can still use a full-service broker if you choose. This allows you to discuss trading opportunities and explore your options. Many brokers offer a mix between the two—you can talk with a broker; then, you can place your own trades online .
Advantages of commodity trading
- * Protection against inflation
- * High leverage facility.
- * Diversification
- * Transparency