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Commodities versus cross pairs with iForex

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  • Agajurus
    replied
    I think with this kind of margin requirement I will need more money to make something out of it.
    But the cool thingis that commodities are mostly fundamental. And geopolitical uncertainties are not resolvedyet and probably won’t be in the foreseeable future. Or maybe they became even more complicated since. So the possibilitesa are still there

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  • Gholbizel
    replied
    Uhm.. Wheat specificaly has 1:50 margin and minimum spread of 34 pips. The minimum volume size is 1.8 but idk if it’s in bushels or not
    The max daily volatility is aroubnd 655 and the average daily volatilty is 200

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  • Agajurus
    replied
    Commodities huh? What’s the trading conditions and volatility for the wheat for example?
    I’m just trying to understand if it’s even worth it

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  • Kelune
    replied
    Hey Arcanebringer, I agree with your observation about the factors that moved the price of cocoa, coffee and orange juice in the past year. Usually, when there is a high inflation rate, the price of agricultural commodities follows that trend. I am not much into these commodities, I trade mainly metals because I find it hard to follow the weather forecast in the main production areas around the world 😀 if one trades agricultural commodities one must pay attention to this factor since it highly affects the price, as you mentioned it in your comment as one of the factors that affected the price. So, besides the technical and fundamental analyses, one must implement forecast prediction too, which is too much for me 😀

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  • Arcanebringer
    replied
    Look Gholbizel, there will be always good trading opportunities in these instruments. I trade both, commodities and cross-pairs, and I advise you to keep one eye on these agricultural commodities as I think that in 2024 it is possible to see new highs in their prices. If we talk about the factors behind this price surge, three major reasons contributed to their rally: the post-COVID demand boom, the inflation and the bad crop weather. While the weather is hard to predict for 2024, the first two factors most likely will push the price up. Maybe not with the same pace, but the technicals show that the sentiment for Cocoa is still a strong buy. So, if I can share my modest opinion I think there is still a good opportunity to go long on Cocoa futures. I am not sure about the long-term investments but for the mid-term or short-term I would definitely go long.

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  • Gholbizel
    replied
    Guys, let me take you back to the original subject of discussion in this thread, about the commodities versus cross-pairs. A few days ago I analyzed the price of the commodities for the past year, and which ones performed well. I was surprised to see that the champions for 2023 are Cocoa, Coffee and Orange Juice. Not the gold, nor the oil, gas or other precious metals. The price of Cocoa increased amazingly by 72.90% only in the last year. Coffee prices increased by 59.32% and Orange Juice by 42.22%.
    What do you think, is there still a chance to take advantage of the price surge of these instruments or it is too late now? Will this price surge continue in 2024?

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  • Agajurus
    replied
    Absolutely, Nuathris. Your dilemma is similar to the age-old question of which came first, the egg or the chicken? Even if the reaction of the Central banks is a response, with their actions they fuel the price rally. So yeah, to make proper trading decisions in the coming days I would watch closely what central banks are doing.

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  • Nuathris
    replied
    Sorry to hear about your loss, but I'm in line with your observations. In addition to that, it looks like central banks globally are continuing to buy gold as a reserve asset. Just recently I read a news article about the amount of gold the banks from Turkey and China bought in December and the numbers were staggering. Anyway, I am not sure if this is a consequence or if this fuels the price rally… this is important to know because if this fuels the rally, then the price might get even higher.. right!?

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  • Deliniel
    replied
    Indeed, Kelune. Generally speaking, It seems the spike is largely attributed to growing concerns about the current geopolitical landscape, particularly the Middle Eastern crisis and the ongoing war in Israel. The inflation concerns are fading away, and there were no major economic events.
    Must be honest, I didn’t expect this crisis to trigger the price to that level and frankly speaking, I entered a short trade 🙁 thank god I put a stop-loss at the previous all-time high, otherwise my losses would be even larger.​

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  • Kelune
    replied
    Hey, guys! The Gold hit an all-time high and we didn’t comment on this significant event. From this perspective, What do you think caused this price surge?

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  • Nuathris
    replied
    I concur, Deliniel. Additionally, I've observed that during periods of heightened global uncertainty, which were plenty in the last couple of years and the world doesn’t failed to create new ones 🙂 US30 often experiences sharp movements, either upward as a safe haven asset or downward due to market jitters. But probably we are taking about the same trading strategy, connected with important news. If we observe the price movement with technical analysis, I would advise looking for key support and resistance levels. Dow Jones is known as an instrument that respects the major support and resistance levels. WHenever the price approaches historical resistance levels, there's often a significant pullback. Combining this with trendline analysis can provide a robust strategy.

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  • Deliniel
    replied
    Absolutely, Kelune. The Dow Jones is indeed quite volatile, as always. Well, good luck with the patterns If you delve deep and find something interesting, please share it with us. I am not going that deep with the US30, but from time to time I check if there is a nice trading opportunity, especially during some important news releases. The last trade I took was like a week ago I guess, during the last FED meeting when they announced that they won't increase the interest rate. Usually, the US30 reacts to the FEDs meeting especially when something interesting is coming out as a piece of news, like it was the case with the last meeting and the price immediately went into a bullish trend.
    Bottom line, I only trade the US30 in combination with some important news releases and don’t have any pattern strategy.​

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  • Kelune
    replied
    Hey, has anyone been tracking the US30 lately? It seems like it's been on a rollercoaster ride due to the recent economic reports and events. It’s been a long time since the last time I traded the Dow Jones, so I am kinda rusty. Anyone found some pattern or strategy that works well with it?

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  • Nuathris
    replied
    This was a great practical example that Gholbizel gave. However, if the amount is much higher than $1000 then the difference in the cost-effectiveness of the crypto transfers goes higher too. Meaning, that for more significant amounts of money, the conversion fee goes lower, while for the bank cards, it stays the same.

    Leave a comment:


  • Gholbizel
    replied
    To sum extent Agajurus is right, but he was not clear enough 😀 I understand his point of view, but let me elaborate a bit more on that.
    If you use a bank card as a payment method for the amount you mentioned the $30 transfer fee will be the total amount you will pay to get your money in your account.
    If you use crypto as a payment method there is almost a zero fee for transfers. There is a small fee that you need to pay as a gas fee, which goes up to approximately $1.5 for a $1,000 equivalent amount in crypto, but you still don't have the money in fiat currency. Then you need to find an exchange office to sell your cryptocurrency for dollars. They will charge you a conversion fee + you will pay a gas fee for the transfer. Again for $1000 the standard conversion fee is around $15. So, the total difference is about $15. You decide what it is worth.​

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