Commodities trading platform in Kenya
There are many things that you should keep in mind when investing and looking for a good and reliable commodities trading platform in Kenya. You should consider the software platform that you have chosen. This means you need to validate the ease of use of the software, the number of charts, trading options, and other features. It is also important to be aware of the various trading strategies to help you better understand the behavior of your investments.
It is important that you have an appropriate commodities trading platform in Kenya. What are goods? These are products that are traded in the commodity market, such as oil, gold, silver, platinum, and similar goods.
With the support of the right commodities trading platform, you can get the data you need to determine the right price in real time to decide where to invest your money.
Market participants can use a variety of strategies: long-term investments, scalping and trading using trends. Each of these cases presupposes a special approach to risk management and requires a special psychology, as well as the use of specialized analysis tools (including graphical ones).
Indicators are just one of the auxiliary tools for working with exchange-traded assets; they do not guarantee positive trading results. In order to understand the use of indicators, you will need a trading terminal, as well as a brokerage account - you can open it online on our platform. You can practice with us using a test account with virtual money. Here are the top indicators to help you trade.
Moving averages smooth out the price data: the smooth line represents the average price over a period of time. Which moving average will be used depends on the chosen time frame for trading.
There is also an oscillating indicator MACD (Moving Average Convergence Divergence). It is used in the following way - the buy looks at whether the lines on the histogram are above or below zero under the price movement of an exchange asset. If the lines are below zero for a long time, this signals a downtrend, and vice versa.
An indicator called the Relative Strength Index is another oscillator, but unlike the MACD, its movement is in the range from 0 to 100. One of the ways to interpret the RSI is when it is above 70 on the histogram, it is an asset “overbought” sign and a signal for correction of its cost. Conversely, when the indicator is below 30, it is a signal for a possible increase in demand and price.
When it comes to trading, there are many types of data that you want to track. One of them is the previous price quotes along with other information such as the number of trades and average prices. With charting software, you can create charts. These graphs will tell you how costs have evolved over the years and what the main trends are.
A line chart is plotted only at the close (or open / high / low) prices, which does not give us an idea of the price movement for the day (if the chart is daily). The bar chart contains open / close prices and highs / lows within the selected period, however, at a quick glance, the entire chart turns into a field with a huge number of vertical lines with short crossbars.
According to the absolute majority of experts, the most convenient chart can be called "Japanese candlesticks" - it shows not only the direction of movement, but also the mood of the players in a particular period of time.
All this and much more can be found on our online brokerage website. In addition, we give you the opportunity to gain additional knowledge in different areas of forex through video training. After registering, you will have access to over a hundred different classes. And our professional assistants will be able to answer you on the hotline in case of any difficulties.
Types of commodities
Typically, there are different types of goods that are more acceptable for exchange in international markets.
The most popular products on our platform are gold, silver and oil of two types BRENT and WTI.
Gold is another popular merchandise. Gold, known as a haven asset, is usually the asset that investors put their money into when markets are in crisis. This means that gold is often inversely proportional to the US dollar.
Although gold is the most popular metal to trade, silver also has some benefits. One is that the price of silver tends to move much faster than the price of gold, making it attractive to active traders. On the other hand, gold has a higher value and is often viewed as an attractive asset for long-term investors.
One of the important aspects of investing in the commodity markets is that you should look for an investment strategy when trading merchandise that will show you a profitable area. It is essential to know all the investment factors when you trade futures or other similar financial instruments.
As for the way you trade, there are three traditional ways of doing it: through futures, CFDs or ETFs.
The most popular method of investing in commodities is through the use of futures or options contracts. This is when a trader makes a purchase on a contract to buy or sell a specific commodity at a specific price on a specific date in the future. As a rule, when trading in goods, the expiration date is set for a very distant date, and you can make money on the price difference by reselling contracts.
Various exchange-traded funds (ETFs) allow you to invest in commodities. An ETF can own a single item or a basket of different items for greater diversification. For most people, this may be the easiest way to invest in merchandise.
A contract for difference (CFD) is a margin product that allows you to profit from the rise or fall in the price of an underlying asset without owning the asset itself.
The benefits of trading in merchandise are clear:
- Diversification. Analysis of the data shows that there is low or negative correlation between commodity prices, stock prices and bond prices. This allows you to hedge against your equity investment.
- Protection against inflation. While inflation weakens bond and stock prices, it has a positive effect on commodity prices. This is quite logical: as a result of inflation, prices for products are rising, as well as for the raw materials from which these products are made.
- Development opportunities. As demand for certain merchandise increases, their price rises accordingly.
The disadvantage of merchandise trading is considered to be high volatility.
How to start commodities trading in the Kenya?
When thinking about how to start trading commodities in Kenya, you need to know how to open a merchandise trading account. This is a simple process to help you get comfortable in the world of commodity investment. You can get all the information you need about merchandise trading from the Internet and from experienced brokers before you leave your home. We remind you that here you will find many video tutorials and a section with answers to the most frequent questions if you have any.
A trading account allows you to buy and sell stocks for a specific amount of time without leaving your home. You don't even need to have a computer if you have an Internet connection.
For example, we provide you with a mobile application, the functionality of which does not differ from a regular PC. If you want to trade, this can be achieved twenty-four hours a day, seven days a week. This removes most of the stress associated with managing your trading account.
After registering for free with us, you can apply for a demo account or a real account. A demo account will give you access to a trading terminal and $10,000 virtual capital. If you don't have any experience or want to avoid the risk of losing cash, then this option is definitely for you. A fantastic demo account allows you to learn how to buy and sell stocks through the trading terminal. Here's the best way to familiarize yourself with the procedure and learn the intricacies of stock trading.
If you have experience with online trading, then you probably want to start with a live account. When registering a real account, you only need $10, this is a very low deposit to enter, take this opportunity! After confirming your identity, you will be taken to the trading area, where a real account will be opened for you. Once your account is open, you can start your item and place your order.
On our platform, if necessary, you can use leverage. Leverage refers to the ratio between equity and borrowed funds. To receive this kind of lending, a trader's account must have its own funds.
If you want to learn how to get started trading commodities, there are some elements that you need to consider that can affect your success in the industry. The main factor you need to think about is finding a good company to run your business. In addition, you should do your homework and do your research on the product you intend to trade. While there are no guarantees, there are several things you can do to improve your chances of success when trading merchandise. Here are some tips for investing in raw materials:
- Good preparation.
- Analyze the market.
- Manage your risks.
- Diversify your portfolio.