Many years ago, trading in commodities started as a bartering system between merchants. A merchant who had excess of some items, would exchange it for another item he was short of, with a second merchant.
Trading in commodities is popular today, and worth trillions of dollars a day.
Commodities are a form of merchandise that has a common price around the world, for instance, coffee beans would carry the same price in Cape town, New York, London and Rio.
The prices differ according to the economic law of supply and demand, and is greatly influenced by natural disasters, war, local political situations, etc.
For the most part, commodities are naturally occurring goods, like gold, oil, iron, or the refinded products, or agricultural products like eggs, sugar, beef, corn.
For many years all trading was done by specialist traders in commodity exchanges. The internet has changed that, as most people today with internet can trade.
However, do not expect to become a commodity trader overnight.
You will have to attend the trading courses, to make sure you understand the terms, and language.
Once you are familiar with the commodity market, you will operate a dummy account until you are familiar with the operating procedures, then you will be ready to trade live.
It is most important that extensive research and training is a requirement before trying the market. Not only will you find that trading has an upward trending market, but also a downward.
You will also be introduced to a leading trader who will give you the necessary knowledge and skills to start trading commodities in South Africa.
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