<h1 dir="ltr">What are financial markets?</h1>
<ol>
<li dir="ltr" aria-level="1">
What are financial markets?
</li>
<li dir="ltr" aria-level="1">
Types of assets:
</li>
<ul>
<li dir="ltr" aria-level="2">
Forex
</li>
<li dir="ltr" aria-level="2">
Cryptocurrencies
</li>
<li dir="ltr" aria-level="2">
CFDs (Contracts for Difference)
</li>
</ul>
<li dir="ltr" aria-level="1">
What influences market movements?
</li>
<li dir="ltr" aria-level="1">
Who participates in the markets?
</li>
<li dir="ltr" aria-level="1">
Bull and bear markets
</li>
<li dir="ltr" aria-level="1">
Volatility and its importance
</li>
<li dir="ltr" aria-level="1">
Liquidity and its impact on trading
</li>
</ol>
 Financial markets are places where buyers and sellers meet to trade various assets, such as currencies, cryptocurrencies, and CFDs. These markets facilitate capital flow and provide opportunities for investing and trading.
In the past, financial markets were accessible only to large corporations and institutions. Today, thanks to technological advancements, they are available to the general public as well.
&nbsp;
<h3 dir="ltr">Types of assets</h3>
<h4 dir="ltr">Forex</h4>
The forex (foreign exchange) market is a global exchange where currencies such as USD, EUR, and GBP are traded. This market operates continuously during the workweek and offers numerous opportunities due to its high liquidity.
<h4 dir="ltr">Cryptocurrencies</h4>
Digital currencies like Bitcoin and Ethereum have revolutionized the financial world. Cryptocurrency markets are known for their high volatility, which can lead to significant profits but also increased risks.
<h4 dir="ltr">CFDs (Contracts for difference)</h4>
CFDs are financial instruments that allow you to speculate on the price movements of various assets, such as forex and cryptocurrencies, without owning them directly.
&nbsp;
<h3 dir="ltr">What influences market movements?</h3>
Prices in financial markets are influenced by several factors, including supply and demand. Key aspects include:
<ul>
<li dir="ltr" aria-level="1">
Economic data: Reports on employment or inflation can significantly impact the markets.
</li>
<li dir="ltr" aria-level="1">
Central bank policies: Changes in interest rates influence the value of currencies in forex markets.
</li>
<li dir="ltr" aria-level="1">
News and events: Announcements about cryptocurrency regulations or technological advancements can quickly shift market sentiment.
</li>
</ul>
&nbsp;
<h3 dir="ltr">Who participates in the markets?</h3>
A wide range of traders and investors operate in financial markets:
<ul>
<li dir="ltr" aria-level="1">
Retail Traders &ndash; Individuals investing their own money.
</li>
<li dir="ltr" aria-level="1">
Brokers &ndash; Professionals facilitating trades.
</li>
<li dir="ltr" aria-level="1">
Financial Institutions &ndash; Large companies like hedge funds or asset managers.
</li>
</ul>
&nbsp;
<h3 dir="ltr">Bull and bear markets</h3>
Financial markets are often driven by two main directions:
<ul>
<li dir="ltr" aria-level="1">
Bull Market: Characterized by rising prices as investors expect positive developments and buy assets.
</li>
<li dir="ltr" aria-level="1">
Bear Market: Occurs when prices decline due to pessimistic outlooks and increased selling activity.
</li>
</ul>
For example, when the number of bulls on a market exceeds the number of bears, prices are likely to rise. Conversely, a dominance of bears can lead to falling prices.
&nbsp;
<h3 dir="ltr">Volatility and its importance</h3>
Volatility represents the extent to which the price of an asset fluctuates over a given period. Cryptocurrency and forex markets are highly volatile, providing more opportunities for profit but also greater risk.
Example: The price of Bitcoin might increase by 10% or drop by 15% in a single day, creating opportunities for quick gains but also potential losses. Forex markets are usually less volatile, but significant economic events, such as central bank announcements, can cause sharp currency movements.
&nbsp;
<h3 dir="ltr">Liquidity and its impact on trading</h3>
Liquidity refers to how quickly and easily an asset can be bought or sold without significantly affecting its price.
Example: Forex markets, such as EUR/USD, are highly liquid &ndash; trades are executed quickly with minimal price differences. On the other hand, lesser-known cryptocurrencies may have low liquidity, making them harder to trade and causing significant price changes with each trade.
High liquidity is advantageous for traders seeking fast and efficient trades, whereas low liquidity may introduce additional risk.
&nbsp;

What are financial markets?

<h1 dir="ltr">What is forex?</h1>
&nbsp;
Forex (foreign exchange market), often referred to as FX, is the largest and most liquid financial market in the world. In 2022, the daily trading volume of the forex market exceeded $7.5 trillion, far surpassing stock markets, which averaged around $553 billion per day.
&nbsp;
<ol>
<li dir="ltr" aria-level="1">
What is forex?
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
What is forex trading?
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
How does forex trading work?
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Who trades on the forex market?
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
How is forex traded?
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Why trade forex?
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Is forex trading right for you?
</li>
</ol>
&nbsp;
<h3 dir="ltr">What is forex trading?</h3>
&nbsp;
Forex trading involves the buying and selling of global currencies. This process allows individuals, businesses, and government institutions to pay for goods and services in other countries. For instance, when you exchange money for a vacation, you are participating in the forex market.
&nbsp;
However, most forex transactions are not for practical purposes. Speculative traders aim to profit from fluctuations in exchange rates by predicting whether one currency will strengthen or weaken against another.
&nbsp;
<h3 dir="ltr">How does forex trading work?</h3>
&nbsp;
Forex is traded in pairs &ndash; you exchange one currency for another. For example, when trading EUR/USD, you are buying euros while simultaneously selling US dollars.
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
If the value of the euro rises against the dollar, you profit.
</li>
</ul>
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
If the value of the euro falls against the dollar, you incur a loss.
</li>
</ul>
&nbsp;
Currencies never rise or fall all at once. The strengthening of one currency always corresponds to the weakening of another, so traders analyze which currency is likely to strengthen relative to another and trade accordingly.
&nbsp;
<h3 dir="ltr">Who trades on the forex market?</h3>
&nbsp;
The forex market is utilized by a wide range of participants:
&nbsp;
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
Companies: Exchange currencies to support their international operations.
</li>
</ul>
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
Central banks: Regulate their currency values through buying and selling.
</li>
</ul>
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
Banks: Dominate global forex trading, with the top 10 banks accounting for two-thirds of total trading volume.
</li>
</ul>
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
Retail traders: Individuals who enter the forex market to take advantage of short-term price movements. 
</li>
</ul>
<h3 dir="ltr">How is Forex traded?</h3>
&nbsp;
Forex trading differs from other markets in that there is no central exchange. Instead, currencies are traded through continuous interbank transactions around the world. The forex market operates 24 hours a day during the workweek, giving traders uninterrupted access to price movements.
&nbsp;
Each currency is represented by a three-letter code:
&nbsp;
<img src="https://direct.y4trade.com/assets/f251c1ba-4665-414d-8014-6415a0e24d95.svg?width=1200&amp;height=800" alt="Currency">
<h3 dir="ltr">&nbsp;</h3>
<h3 dir="ltr">Why trade forex?</h3>
&nbsp;
<ul>
<li dir="ltr" role="presentation">Speculate on Rising or Falling Prices: Unlike stocks, where you can only profit from price increases, forex allows you to profit from both rising and falling prices.</li>
</ul>
&nbsp;
<ul>
<li dir="ltr" role="presentation">High Liquidity: A constant flow of buyers and sellers ensures low costs and quick trade execution.</li>
</ul>
&nbsp;
<ul>
<li dir="ltr" role="presentation">Accessibility: The market is open 24 hours a day during the workweek, offering flexibility for traders.</li>
</ul>
&nbsp;
<h3 dir="ltr">Is forex trading right for you?</h3>
&nbsp;
Forex trading may be suitable for investors who:
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
Prefer Short-Term Opportunities: Forex positions are often held for a few days or weeks, with some traders executing trades in minutes or hours.
</li>
</ul>
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
Make Their Own Decisions: Most brokers provide platforms for trade execution only, without offering advice.
</li>
</ul>
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
Want to Diversify Their Portfolio: Currency trading offers exposure to global markets.
</li>
</ul>
&nbsp;

What is forex?

<h1 dir="ltr">Forex trading</h1>
When trading on the foreign exchange market, you buy or sell currency pairs such as EUR/USD, GBP/USD, or USD/JPY. Let&rsquo;s take a closer look at the structure of currency pairs.
&nbsp;
The first currency in the pair is called the base currency. The second currency is known as the quote currency (or counter currency). The exchange rate at which the pair is traded shows how much of the quote currency is needed to purchase one unit of the base currency. 
&nbsp;
<ol>
<li dir="ltr" aria-level="1">
Going long in Forex 
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Short selling in Forex 
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
What is a Pip? 
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Forex and leverage 
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Currency Pairs 
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
What influences forex markets? 
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
How to make your first forex trade
</li>
</ol>
 
&nbsp;
<h3 dir="ltr">Example of a quote and base currency</h3>
Let&rsquo;s imagine EUR/USD is trading at 1.3010. The base currency is the euro, and the quote currency is the US dollar. This means that to purchase one euro, you need 1.3010 dollars.
&nbsp;
<h3 dir="ltr">Going long on forex</h3>
Traders on the foreign exchange market aim to profit from changes in the exchange rates of currency pairs. If you expect the US dollar to gain value against the euro, you can buy EUR/USD to capitalize on this movement.
&nbsp;
Example of a long EUR/USD position
&nbsp;
<ul>
<li dir="ltr" aria-level="1">
EUR/USD is trading at 1.3010.
</li>
<li dir="ltr" aria-level="1">
You purchase 10,000 euros, which equals 13,010 USD.
</li>
<li dir="ltr" aria-level="1">
EUR/USD rises to 1.3110.
</li>
<li dir="ltr" aria-level="1">
You sell 10,000 euros for 13,110 USD, making a profit of 100 USD. If EUR/USD falls to 1.2910, you would incur a loss of 100 USD.
</li>
</ul>
&nbsp;
<h3 dir="ltr">Short selling on forex</h3>
In forex trading, you don&rsquo;t only have to buy currency pairs. If you believe the base currency will lose value against the quote currency, you can sell the pair instead.
&nbsp;
Selling a forex pair means buying the quote currency by selling the base currency.
&nbsp;
This creates a position that generates a profit when the value of the pair decreases&mdash;this is called a short position. This trading method is popular in forex because it involves no additional costs or restrictions.
&nbsp;
Example of a short EUR/USD Position
<ul>
<li dir="ltr" aria-level="1">
EUR/USD is trading at 1.3010.
</li>
<li dir="ltr" aria-level="1">
By selling 10,000 euros, you receive 13,010 USD.
</li>
<li dir="ltr" aria-level="1">
EUR/USD falls to 1.2902.
</li>
<li dir="ltr" aria-level="1">
You sell 12,902 USD to repurchase 10,000 euros, making a profit of 108 USD. If EUR/USD rises instead, you would incur a loss.
</li>
</ul>
&nbsp;
<h3 dir="ltr">What is a Pip?</h3>
A pip represents the smallest possible price movement in a forex pair. In most forex pairs, a pip is defined as a one-digit movement in the fourth decimal place. For instance, if EUR/USD rises from 1.0717 to 1.0718, it has moved up by one pip.
&nbsp;
An exception to this rule applies to pairs where the quote currency is the Japanese yen (JPY). In these cases, a pip corresponds to a one-digit movement in the second decimal place. For example, if USD/JPY falls from 110.08 to 110.03, it has moved down by five pips. This is because the yen has a comparatively lower value than other major currencies.
&nbsp;
Fractional Pips
 In addition to standard pips, a fifth decimal place is often displayed. These are known as fractional pips or pipettes, and they are sometimes written in smaller text to distinguish them from standard pips.
&nbsp;
How to calculate Pip Value
 A pip is worth 0.0001 (or 0.01%) of one unit of the quote currency. To earn one unit of the quote currency for each pip movement, you must trade 10,000 units of the base currency. This amount is called the lot size.
&nbsp;
Example: To earn 1 USD for every pip movement in EUR/USD, you need to trade the equivalent of 10,000 EUR.
&nbsp;
For currency pairs with the yen, a pip is worth 0.01 of the base currency. If you trade 10,000 USD in USD/JPY, a one-pip movement equals a gain or loss of 100 JPY. If USD/JPY is trading at 110.00, the pip value is equivalent to 0.91 USD, calculated as ((1 pip / 110.00) x 10,000 USD).
&nbsp;
Example of pip value in USD/JPY
<ul>
<li dir="ltr" aria-level="1">
USD/JPY is trading at 110.00.
</li>
<li dir="ltr" aria-level="1">
You trade 10,000 USD, which equals 1,100,000 JPY.
</li>
<li dir="ltr" aria-level="1">
USD/JPY rises to 111.00.
</li>
<li dir="ltr" aria-level="1">
You sell at 1,110,000 JPY, making a profit of 10,000 JPY.
</li>
<li dir="ltr" aria-level="1">
This equals 90.01 USD (10,000 JPY / 111.00). If USD/JPY falls by 100 pips, you would incur a loss of 10,000 JPY.
</li>
</ul>
&nbsp;
<h3 dir="ltr">Forex and leverage</h3>
As you may have noticed, a pip has a small value in real terms. This is why most individual traders use leverage to maximize the impact of price fluctuations in forex.
&nbsp;
Leverage allows traders to control a much larger position by depositing only a small portion of their own capital (called margin). This enables retail investors to open short-term forex positions without tying up large amounts of money.
&nbsp;
However, leverage increases both potential profits and potential losses, so careful risk management is essential.
&nbsp;
<h3 dir="ltr">Currency pairs</h3>
Currency pairs are grouped into three categories based on their popularity and trade volume: major, minor, and exotic.
&nbsp;
Major currency pairs
 Major pairs represent the most frequently traded currencies, accounting for approximately 85% of the total forex market. High liquidity makes trading these pairs cheaper compared to minor pairs.
&nbsp;
The most frequently traded major pairs include:
<ul>
<li dir="ltr" aria-level="1">
EUR/USD &ndash; euro vs US dollar
</li>
<li dir="ltr" aria-level="1">
USD/JPY &ndash; US dollar vs Japanese yen
</li>
<li dir="ltr" aria-level="1">
GBP/USD &ndash; British pound vs US dollar
</li>
<li dir="ltr" aria-level="1">
AUD/USD &ndash; Australian dollar vs US dollar
</li>
<li dir="ltr" aria-level="1">
USD/CHF &ndash; US dollar vs Swiss franc
</li>
<li dir="ltr" aria-level="1">
USD/CAD &ndash; US dollar vs Canadian dollar
</li>
</ul>
&nbsp;
EUR/USD is the most popular pair, making up approximately 28% of all forex trades. All major pairs include the US dollar.
&nbsp;
Summary of abbreviations and nicknames:
<ul>
<li dir="ltr" aria-level="1">
EUR/USD &ndash; Euro-dollar
</li>
<li dir="ltr" aria-level="1">
USD/JPY &ndash; Dollar-yen
</li>
<li dir="ltr" aria-level="1">
GBP/USD &ndash; Cable
</li>
<li dir="ltr" aria-level="1">
AUD/USD &ndash; Aussie
</li>
<li dir="ltr" aria-level="1">
USD/CHF &ndash; Swissy
</li>
<li dir="ltr" aria-level="1">
USD/CAD &ndash; Loonie
</li>
</ul>
&nbsp;
What influences forex markets?
&nbsp;
The value of currency pairs can change throughout the day due to various factors, including:
<ul>
<li dir="ltr" aria-level="1">
Economic data
</li>
<li dir="ltr" aria-level="1">
Central banks
</li>
<li dir="ltr" aria-level="1">
Politics
</li>
</ul>
&nbsp;
Economic data: Currencies often reflect the economic health of their respective countries. Key indicators like inflation, unemployment, trade balances, and wage levels can significantly impact market volatility.
&nbsp;
Central banks: These institutions influence currencies by adjusting interest rates or monetary supply. They can also intervene by directly buying or selling their currency to stabilize its value.
&nbsp;
Politics: Political uncertainty or events can strongly impact currency markets. For instance, the US dollar is often considered a safe-haven currency, so its value typically rises during global crises.
&nbsp;
Even seemingly minor events, such as a finance minister&rsquo;s speech, can cause significant price movements.
&nbsp;
<h3 dir="ltr">How to make your first forex trade</h3>
Now that you have some basic knowledge about forex, you can make your first trade. If you have a demo account on the FOREX.com platform, follow these steps to open a practice trade. If you don&rsquo;t have one yet, registration is quick and free. Open a demo account.
&nbsp;
Alternatively, if you want to trade on live markets, you can open a live account.
&nbsp;
Choose a currency pair
 Beginners often focus on major pairs like EUR/USD, USD/CAD, or GBP/USD. However, you can trade any pair available on the platform, as long as you have sufficient virtual funds in your demo account. Search for "EUR/USD" on the demo platform.
&nbsp;
Analyze the market
 Analyze whether to take a long or short position and choose your strategy. You can review historical and current charts, monitor economic news, or use technical indicators. Review the latest news about EUR/USD and look for signals of potential price movement.
&nbsp;
Read the quote
 Forex pairs always display two prices:
Bid price &ndash; the price at which you can sell the pair.
Ask price &ndash; the price at which you can buy the pair.
&nbsp;
The difference between these prices is called the spread, which represents the cost of trading. Spreads may vary between brokers.
&nbsp;
Click on the market name (e.g., EUR/USD) to view the trade ticket.
&nbsp;
Set the trade size and choose your position
 The size of your trade determines the amount of the base currency you are trading and the value of each pip movement.
&nbsp;
<ul>
<li dir="ltr" role="presentation">Select Buy if you expect the base currency to rise in value against the quote currency.</li>
<li dir="ltr" role="presentation">Select Sell if you expect the base currency to fall in value against the quote currency.</li>
<li dir="ltr" role="presentation">Choose a size of 1,000 units (a mini lot) and click Place Trade to open your position.</li>
</ul>
&nbsp;
Monitor and close your trade
 To close a forex trade, you trade in the opposite direction of how you opened it. If you opened with a buy trade, you close with a sell trade, and vice versa. Navigate to your open positions to see your current profit or loss. When you&rsquo;re ready to close the position, click Close next to EUR/USD to sell 1,000 EUR/USD.
&nbsp;

Forex trading

<h1 dir="ltr">Commodity trading</h1>
Commodities are essential to the global economy&mdash;and humanity as a whole. At FOREX.com, we offer trading opportunities in various commodities, including two of the largest on the market: gold and silver. In the next lesson, we&rsquo;ll take a closer look at how trading them works.
&nbsp;
Let&rsquo;s explore how companies and traders buy and sell energy, agricultural products, precious metals, and more.
<h3 dir="ltr">What are commodities?</h3>
<ul>
<li dir="ltr" aria-level="1">
Soft vs. hard commodities
</li>
<li dir="ltr" aria-level="1">
Categories of commodities
</li>
<li dir="ltr" aria-level="1">
Who trades commodities?
</li>
</ul>
&nbsp;
<h3 dir="ltr">What are commodities?</h3>
Commodities are natural products consumed or used by people, animals, or industries, such as oil, sugar, gold, and wheat. These products have been traded for thousands of years, feeding people and livestock, powering production, and more.
&nbsp;
Commodity trading remains just as crucial today, with commodities playing a key role in the global economy. They are the building blocks of the modern economy, making them an attractive prospect for many traders.
&nbsp;
<h3 dir="ltr">Defining commodities</h3>
Producers, consumers, and speculators trade billions of dollars in commodities every day. To facilitate such trading, it is essential for buyers and sellers to be assured that every asset meets standard size and quality.
&nbsp;
For this reason, all traded commodities must be fungible. This means they can be exchanged for another item of the same kind, regardless of origin.
&nbsp;
For example, a gold bar mined in South Africa must have the same quality and size as a gold bar mined in Australia. This ensures that commodity traders can focus on trading without having to inspect or evaluate each item individually.
&nbsp;
If a product is not fungible&mdash;such as clothing or electronics&mdash;it cannot be traded as a commodity.
&nbsp;
<h3 dir="ltr">Soft vs. hard commodities</h3>
Commodities can be divided into two main groups: soft and hard.
&nbsp;
Soft commodities are goods grown or raised for human or animal consumption. These products are cultivated in different parts of the world but are never mined or extracted.
&nbsp;
Hard commodities, on the other hand, are raw materials extracted, mined, or pumped from the earth. They are the backbone of industrial production, powering machines and providing essential resources.
&nbsp;
<h3 dir="ltr">Categories of commodities</h3>
In addition to being classified as soft or hard, commodities are often grouped into three main categories: energy, agricultural products, and metals.
&nbsp;
A table comparing these three types of commodities would include examples such as metals, agricultural products (also called "softs"), and energy resources. 
&nbsp;
<img src="https://direct.y4trade.com/assets/be7b0a34-8ac3-4cb1-9f6e-d6b6d61e606c.svg?width=600&amp;height=400" alt="Commodities Markets ">
<h3 dir="ltr">Energy</h3>
Energy commodities are extracted from the earth. Their prices can significantly influence the global economy, and their value is often determined by the state of the economy. For instance, a growing economy can lead to increased demand for oil, driving its price up. <img src="https://direct.y4trade.com/assets/27e8a416-6e44-412b-9eef-ae88ee964225.png?width=800&amp;height=200" alt="Wti Vs Brent"> 
&nbsp;
Examples:
<ul>
<li dir="ltr" aria-level="1">
American oil (WTI or NYMEX)
</li>
<li dir="ltr" aria-level="1">
European oil (Brent)
</li>
<li dir="ltr" aria-level="1">
Natural gas
</li>
</ul>
&nbsp;
WTI vs. Brent
 Did you know that the oil market has various segments because oil quality differs by region?
&nbsp;
The two main types are West Texas Intermediate (WTI, American oil) and Brent Crude (oil from the UK). While their prices are often similar, they are not identical.
&nbsp;
<h3 dir="ltr">Agriculture</h3>
Agricultural commodities form the basis of global food supplies for both humans and animals. These products are grown or bred and are less popular among traders compared to energy or metals. Weather conditions and spoilage often significantly impact their prices, leading to considerable price volatility.
&nbsp;
Examples of soft commodities:
<ul>
<li dir="ltr" aria-level="1">
Coffee
</li>
<li dir="ltr" aria-level="1">
Corn
</li>
<li dir="ltr" aria-level="1">
Cotton
</li>
<li dir="ltr" aria-level="1">
Orange juice
</li>
<li dir="ltr" aria-level="1">
Soybean oil
</li>
<li dir="ltr" aria-level="1">
Wheat
</li>
</ul>
&nbsp;
<h3 dir="ltr">Metals</h3>
Metals are divided into two main groups: precious metals (like gold, silver, or platinum) and industrial metals (like aluminum, lead, or copper). Investors worldwide consider gold a "safe haven," meaning its price often rises during uncertain times. On the other hand, the prices of industrial metals are driven by demand from industries that use them in production.
&nbsp;
Examples of Hard Commodities:
<ul>
<li dir="ltr" aria-level="1">
Copper
</li>
<li dir="ltr" aria-level="1">
Gold
</li>
<li dir="ltr" aria-level="1">
Palladium
</li>
<li dir="ltr" aria-level="1">
Platinum
</li>
<li dir="ltr" aria-level="1">
Silver
</li>
</ul>
&nbsp;
<h3 dir="ltr">Who trades commodities?</h3>
There are four main types of participants in the commodity market. Each has different goals and requirements for trading:
<ul>
<li dir="ltr" aria-level="1">
Producers
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Consumers
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Speculators
</li>
<li dir="ltr" style="font-weight: bold;" aria-level="1">
Hedgers
</li>
</ul>
Producers are companies that produce or extract commodities. For example, farmers grow soft commodities, while miners and oil companies focus on hard commodities. Their goal is to secure the highest possible price for their products and guarantee income in advance.
&nbsp;
Consumers buy products from producers and use them. For instance, the jewelry industry is one of the largest consumers of gold, while airlines consume large quantities of oil. If consumer demand for a commodity decreases, its price will likely drop as well.
&nbsp;
Speculators aim to profit from the price volatility of commodities without intending to own any physical assets. Instead, they trade through derivatives like futures or options.
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Commodities often move inversely to other markets, such as stocks or bonds. For example, a stock market crash can increase the price of gold. Hedgers are investors who use this relationship to protect their stock or bond portfolios from adverse market movements.
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Commodity Trading

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Mastering basic strategies, technical analysis focused on trends, support/resistance, and indicators (RSI, MACD), basic money management techniques, introduction to trading journal, and improving entry/exit efficiency. For those who know the basics and want to level up.
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Intermediate

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In-depth technical analysis (patterns, indicators, price action), advanced entry/exit strategies, money management, intraday and swing trading, backtesting, trading plan development, data analysis and statistics. Designed for traders with practical experience.
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Advanced 

Basics of financial markets, asset types (stocks, forex, cryptocurrencies), introduction to technical and fundamental analysis, risk management, trading platforms, and trading psychology. Suitable for complete beginners with no prior experience.

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