How does Commodities Trading work?
Commodities trading, including gold and silver, shares similarities with trading shares or futures but stands out by facilitating the exchange of these valuable resources without the need for physical delivery. A key advantage of commodities trading, compared to other financial instruments, is the ability to trade relatively small sizes being feasible. Additionally, commodities trading often involves leveraging, with ratios reaching as high as 1:200 in some cases, a significant departure from the typical absence of leverage in share trading.