Announcement

Collapse
No announcement yet.

Commodities versus cross pairs with iForex

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Commodities versus cross pairs with iForex

    I’m looking forward to opening a trading account with iForex. I never trade with unregulated brokerage companies. This broker is supervised by cySEC and it gives me a feeling of reliability.
    Earlier I traded major currencies. With this broker, I intend to try commodities and cross pairs. I’m a bit puzzled. I heard that commodities and cross pairs are much easier to trade than majors and indices but I also heard about a big pitfall about commodity trading. Could anybody make it clear? What’s better to trade: commodities or cross pairs?

  • #2
    Yeah, you heard the right thing. Commodities are more cunning and therefore harder to trade in the short term. Metals are especially tricky in this case. Scalping this stuff is an insane thing, although many try. They are too volatile and you can stumble on your stop thousand times even if your forecast is right but this damn thing goes goes wildly to and fro. On the other hand, metals are very good for long-term trading, if you manage to enter the market at the right time. I like to trade metals in the long term but for me it’s hell to open a trade here. To some extent, metals are similar to cryptos in this regard. I trade them both in the long term. H4 and D are my favorite timeframes.
    As for cross-pairs, I think they are much easier to trade. I mean in the short term.

    Comment


    • #3
      I wanna try everything but I can’t afford a decent depo from scratch. I’m going to start with $200. The broker offers more than enough crosses and I hope it will be a relatively easy start. I tried them on a demo account. I liked them. I hope it all will not be disappointing for me.

      Comment


      • #4
        Combine trading cross pairs with commodities is an option too. I mean if you don't have big account that doesn't mean there's no need in diversity. Plus it allows you to go in two directions. So if market turns against you there's always a chance to gain profit in another product

        Comment


        • #5
          I'm thinking of such strategies you said above. That reminds me of some kind of hedging. Very promising strategies, if use it correctly.
          But I worry about deposit and if it could stand. And second thing i'm worrying about is number of product you have to trade and watch. I could simply afraid of not be in time with all positions.

          Comment


          • #6
            Well you still have your risk management
            Nevertheless you could just diversify your money by period. For example try to invest in commodities for a medium period, while trade another part of your funds on cross pairs market. You can even have a different account for long term and intraday trading.

            Comment


            • #7
              Sorry for interrupting you guys, but since you said metals are good for long term investment i have a question: is there some specific moments about that? I've small experience in trading, but for now i'm planning to invest in metals. Some people said that metals and especially gold are not good for investment now, but i still want to try it in the long term. Futures have many benefits, but also could cause a big losses, so i want to figure it out

              Comment


              • #8
                Speaking of gold, some say the opposite things that gold is the best investment product. I think that depends on trader if it is comfortable to trade this particular product.
                Futures have its time period - expiry date, so it could be tough for some people to understand how to invest in it, but the main thing is that you invest in more in base product and then you can just roll to the next expiry date via calendar spreads

                Comment


                • #9
                  Sounds a bit complicated for me. Isn't futures just expire on the particular date? I remember someone told me futures isn't good for investing because it has expiry date

                  Comment


                  • #10
                    That's right, it really has. Futures usually are used to hedge another asset, for example stock. And it's not as useful as stock if we talking about investment due to finite lifetime. Moreover futures don't pay dividends.
                    But some people keep their funds this way:
                    - they buy some futures
                    - when it's close to expiry date they sell it and buy futures of the same product, but next date of expire
                    That method is called calendar spread. It's simultaneous buy and sell futures with the same base product, but different expiry date. It is used very often by those who trade commodities futures. For example oil have monthly futures. Hence, in order to possess this product's futures in the next month, trader should use calendar spread at the end of the month

                    Comment


                    • #11
                      I would like to ask, is trading you talked about better than cross pairs? I think I heard something about it. I tried trading cross pairs with iForex and it looked nice.

                      Comment


                      • #12
                        Originally posted by Agajurus View Post
                        I would like to ask, is trading you talked about better than cross pairs? I think I heard something about it. I tried trading cross pairs with iForex and it looked nice.
                        I wouldn't say so. I would say it is different because it is different trading products. But it offers a number of strategies once you learn its pecularities.

                        Comment


                        • #13
                          By the way, do you have to posses any futures position (long or shot) to make operations with this calendar spread?

                          Comment


                          • #14
                            Yes and no
                            The calendar spread is about the difference in price between two futures by time.
                            Let me explain by example of one month future calendar spread. If you own one oil futures with an expiration in november then buying a calendar spread will give you a one oil futures with expiration in december, because, as said above, calendar spread is simultaneous selling one futures and buying another, in this case it is selling november and buying december. But even if you don't have any positions, the buying calendar spread will give you sell in november and buy in december, hence you wil have position with two futures. Hope that was clear

                            Comment

                            Working...
                            X