COMMODITIES
In economics, physical assets that meet human needs are called goods, or more precisely, economic goods. An economic good has a value. However, this value can be defined in different ways. While the value of some goods is determined by their production costs, the value of some goods is determined by the benefits they provide.
Goods and services all over the world consist of the consumption of industrial input goods themselves or their derivatives, such as agricultural raw materials, energy raw materials and precious metals, which are registered as scarce resources. Just as silver is used as a raw material in a solar panel, we also witness the use of petroleum derivatives in many areas.
Aside from the derivatives of industrial raw materials, the situation is different in agricultural raw materials. There is also volatility in agricultural commodity prices due to the increasing world population, decreasing access to clean food and water, and seasonal temperatures that are increasingly deviating from normal.
Considering the World Bank’s commodity statistics on an annual basis, it is noteworthy that commodity demand has increased significantly since the 2000s, despite the global crises. In addition, it is possible to say that both commodity demand and commodity prices were affected by the regional and global economic recession in 2001 – 2008 – 2011.
In this view, commodity prices have an important place both in our daily lives and in our financial investments. Aware of this, FORBEX offers its investors the opportunity to invest under professional conditions in agricultural commodities, precious metals and energy derivatives such as oil and natural gas.
Commodity Types
Gold is a precious metal that has been in the lives of human beings since 5000 BC. It has been considered sacred by many civilizations and seen as the symbol of sovereignty. Gold, with an atomic number of 79, has always attracted the attention of humanity due to its attractive yellow color, resistance to acids and rain, and its availability in nature.
In recent history, gold has begun to be preferred as a reserve by central banks, and countries have wanted to withdraw the gold they own but hold in different geographies to their homelands. Today, we can say that the interest in gold has not ended yet.
Especially in the period after 2008, when the circulation of paper money increased, Central Banks became net buyers, increased the amount of gold reserves, and the global demand for gold increased.
Today, gold is used as a hedge against inflation, and it also functions as a safe asset because it is a scarce resource and a precious metal.
As FORBEX, we know the importance of gold. For this reason, we added XAUUSD, where you can trade spot gold prices, GAUTRY, where you can trade in grams/TRY, and GOLDQ, a gold futures product, to our trading platforms. We also know the value of what is valuable.
Agricultural commodity is the general name given to products such as wheat, soybeans, corn, coffee and cocoa that we use as food or as food raw materials. The exchange of these products is as old as the history of humanity. It is accepted that rice trade in China dates back 6,000 years. After the invention of money, these products became the subject of buying and selling, and they have pioneered the development of derivative product contracts since the 17th century. Towards the mid-1800s, the buying and selling of derivative products based on these commodity products accelerated in the USA, and the Chicago Mercantile Exchange (CBOT) was established in 1848. There are currently more than 10 commodity exchanges in the USA, and hundreds of types of commodity contracts are traded.
Having agricultural commodities in the portfolio or being tradable on the trading platform increases the investor’s flexibility in the financial markets, maximizes portfolio optimization and allows him to turn instant opportunities into profit.
FORBEX allows transactions in corn and soybean derivatives with favorable trading conditions, uninterrupted and fast order transmission.
Another branch of the commodity consists of energy products. Energy products include two main types of oil, natural gas, electricity, etc. Energy prices; It acts as a barometer in the sense that it measures global risk appetite, global growth and regional risks. For this reason, it has been observed that energy markets are highly correlated with other financial markets such as stock or bond markets. This makes predictability relatively higher.
On the other hand, considering that energy prices are a matter of supply and demand and frequently move with the global conjuncture, it has been determined that trend movements in prices last longer and trend changes involve relatively less volatility.
FORBEX includes the most traded energy products such as Brent, WTI and Natural Gas in its product range. In these products, which follow the nearest futures contract on the relevant exchange, you do not pay any additional carrying costs since there is intrinsic value. You can trade with leverage up to 1:500 for both Brent, WTI and natural gas.