Day Trading in Commodity Markets | Forex Factory

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Day Trading in Commodity Markets

  • #1
  • First Post: Nov 22, 2009 9:33am Nov 22, 2009 9:33am
Was just wondering which are the more popular commodity markets to day trade that have sufficient volatility and liquidity. Anyone care to share some insights?
  • #2
  • Nov 22, 2009 9:52am Nov 22, 2009 9:52am
Quoting pambeesley
Was just wondering which are the more popular commodity markets to day trade that have sufficient volatility and liquidity. Anyone care to share some insights?


gold and silver are popular -- a lot of brokers offer them along with fx. crude is another popular one, but i find it tends to move in consolidations and jumps.

assuming you're a retail trader -- one of the important things to look out for are the contracts your broker offers...some of the brokers change the margin requirements on certain commodity futures quite frequently.

if you live in the U.S. ...there are quite a few brokers with very good platforms and support for multiple markets through cfd's, but won't take on clients from the states...depending on your acct size, there are ways around this...but it comes with its own hassle and risk.
  • #3
  • Nov 22, 2009 9:59am Nov 22, 2009 9:59am
Quoting pursuit_21
gold and silver are popular -- a lot of brokers offer them along with fx. crude is another popular one, but i find it tends to move in consolidations and jumps.

assuming you're a retail trader -- one of the important things to look out for are the contracts your broker offers...some of the brokers change the margin requirements on certain commodity futures quite frequently.

if you live in the U.S. ...there are quite a few brokers with very good platforms and support for multiple markets through cfd's, but won't take on clients from the states...depending...
Thanks alot. Any thoughts on Soybeans? Been told they have sufficient volatility to day-trade and also tend to trend rather cleanly.

On a side note, I use to trade CFD's, but the commisions are a killer. =p
  • #4
  • Nov 22, 2009 11:04am Nov 22, 2009 11:04am
mmm...soybeans...

i don't know enough about soft-commodities to really give you solid advice on which one to day-trade if that's what you're set on doing. if you look at a couple charts it does look very day trade-able, however make sure you watch out for those price spikes. i see plenty of gapping up and down as well.

unless you have industry background or information source that helps with your edge on soft-commods or if you can lease a seat on the floor itself....i think it may be tough to technical trade soy from a retail perspective.

just my 2cents, all the best with your trading.

btw...just out of curiosity, why the interest in soft-commodities?
  • #5
  • Nov 22, 2009 1:48pm Nov 22, 2009 1:48pm
Try the grains they trend well when they breakout. Also sugar, coffee very good trenders.

Best tio trade them from a longer term perspective...weekly/daily charts.

golferfx
  • #6
  • Nov 22, 2009 11:54pm Nov 22, 2009 11:54pm
Corn and wheat.

Also, sugar. I've heard bad things about OJ...
  • #7
  • Feb 15, 2010 6:29am Feb 15, 2010 6:29am
most liquid from the top of my head

10yrs and 30years
S&P
Nikkei
Kospi
Euro
Oil and Gold are pretty good
Grabbing the bull by the horns!
  • #8
  • Last Post: Feb 15, 2010 4:32pm Feb 15, 2010 4:32pm
Metals are good for daytrading.

Copper is quite volatile.

Lead is also a good daytrading tool.

Today they have all gone up, looks like there is going to be a good short opportunity
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