Trade Commodities with Binary Options | Nadex

Binary options on gas

Strategy How to trade commodities with binary options Commodities trading allows you to speculate on markets that are integral in our daily lives. Binary option contracts are a good way to trade commodities markets, as they offer limited risk and excellent opportunities to make predictions on market movements.

Market Overview

Learn about commodities, understand what they are, and find out how you can benefit from trading them with binary option contracts. What is commodities binary options on gas Commodities trading means buying or selling raw materials that form the basis of our society, such as precious metals, energy, and agricultural products.

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Most commodities are traded with futures contracts where there is an agreement between a buyer and seller to honor a set price on a future date. Traders can hedge or speculate on the price of a commodity, predicting whether it will increase or decrease without taking ownership of the actual commodity.

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You can also gain exposure to commodities with binary optioncall spreadand knock-out contracts, where you can speculate on their prices, again without taking ownership of the actual commodity.

Binary options are a short-term trading product that appeals to those wanting to capitalize on short-term price action, rather than more traditional longer-term methods of investing. With these contracts, risk management is built in, which is beneficial when trading metal and binary options on gas markets that could be affected by political and economic events, or supply and demand.

Call spread contracts have a floor and ceiling built into the trading product and the amount you could lose is always limited.

Nadex Knock-Outs give you the opportunity to speculate on gold and oil with predefined boundaries. What commodities can you trade on Nadex?

Table of Contents

Commodities generally fall into one of three categories: metal, energy, and agricultural. These are the commodities you can trade on Nadex: Metal Nadex offers binary option, call spread, or knock-out contracts in gold, silver, or copper. Energy Nadex offers binary option, call spread, or knock-out contracts in crude oil or natural gas.

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Agricultural Nadex offers call spread contracts in corn and soybeans. How to trade commodities with binary options?

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This is how you can trade commodity binary option contracts on Nadex: Navigate to commodities in the binary options menu within the Nadex platform. See the list of commodities contracts, the times you can trade them, and the expiration times. Click on a time period and see a list of strikes.

This is asking you if you believe that the crude oil market will be above If you agree with a statement, you buy the contract.

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If you disagree, then you sell it. Get a better understanding about the basics of trading binary option contracts so you can add them into your trading plan. Discover a world of opportunity with binary option contracts based on popular commodities. Still have questions?

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