Commodities, whether they are related to food, energy or metals, are an important part of everyday life. Anyone who drives a car can become significantly impacted by high crude oil prices. Anyone who eats might feel the impact of a drought on the soybean supply. Similarly, commodities can be an important way to diversify a trading portfolio beyond traditional securities that you already know– either for a short term, a long term, or as a place to park cash during unusually volatile or bearish stock markets. (Commodities traditionally move in opposition to stocks.)
In Nigeria, you will observe that the average investor do not invest in commodities because doing so required significant amounts of time and expertise. Today, though, there are a number of different routes to the commodity markets, and some of these routes make it easy for even non-professional traders to participate.
Many Nigerian investors however use stocks of companies in industries related to a commodity in some way. For example, those wishing to invest in oil could elect from drillers, refiners, tanker companies or diversified oil companies. Those bitten by the gold bug could purchase mining companies, smelters or refiners etc.
Stocks are easy to buy, hold, trade and track online, and you can invest in a particular sector. Of course, investors need to do some research to help ensure that a particular company (stock) is a good investment.
Stock options that we trade in at Resource Arena require a smaller investment (minimum we take is $100) than buying stocks directly yourself. This is another way you can invest in commodities. While risk is limited to the cost of the option, the price movement will not usually directly mirror the underlying stock.
We have been using this broker for our Stocks, Forex and Commodities trading for a long time now and we thank God that we have made great profit from them, which why we are inviting you to join us to increase our trading portfolio and so that we can share profits less some little withdrawal fees we are charged on withdrawal.
Use the form below to request more detail of how you can join us in our stocks, forex and commodities trading!