The floor of the New York Mercantile Exchange, or any trading house, is known as the “pit”. There are not as many traders on the floor or in the pit as there was previously, but trading still happens. The growth of electronic trading and companies like ActivTrades has cut the need for traders to be physically at the exchange. Traders no longer need to represent investors in person; they can be part of an online brokerage.
Energy and metal trading are done at a mercantile exchange, while stocks and bonds are traded at the stock exchange; both places need traders and investors in order to function properly. The electronic ability to trade and invest has improved the markets because there is more access available for the average person. No longer is it necessary to travel to a major city like New York or London in order to find a trader or brokerage to handle your funds. Trading has increased, on a smaller scale, but an increase is good because it strengthens the currencies and economies.
Inflation rates drive commodity rates, so with falling inflation in places like the U.S. and the UK, commodity prices will also drop. This will affect the profits made by investors, but as in any market there are ups and downs. There does not seem to be any major changes coming, up or down, according to experts in the commodities market, so a competent brokerage should still be able to make money. Markets work in cyclical ways, so as world economies rebound so do prices of commodities and the like.
Investing in spread betting or general Forex trading is a great way to expand your capital base, but you must be smart about investing your hard earned capital. Use the tools that are available on the website to educate you as to how each market works and which type of trading is available. Be sure your investment is going to be insured against loss due to unforeseen circumstances, however, always understand that there is no return on monies invested recklessly. ActivTrades is insured by Lloyd’s of London, which means that their clients are individually covered up to £500,000 as Excess of FSCS Insurance.
When beginning to invest, take time to understand how the markets work. Learn about the cycles that commodities seem to run in and become familiar with how all the global economies affect one another.
For further information on the services offered by ActivTrades, call today on 0207 680 7300.
Leveraged products carry a high degree of risk to your capital. The ActivTrades Excess of FSCS Insurance is subject to the Terms and Conditions of the policy wording.
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