eToro Opens Doors to 8 Key Commodities Markets
eToro has expanded its commodities portfolio by introducing eight new futures contracts. These additions aim to provide traders with diversified opportunities across essential markets, including energy, agriculture, and industrial materials.
New Commodities Futures Available on eToro
These are the new commodities:
1. Gas Oil Futures ($GasOil.FUT)
This future meets low sulfur environmental standards, aligning with global regulatory requirements and environmental goals.
2. Power Futures ($POWER.FUT)
Power Futures track electricity prices in Germany, the leading benchmark for energy trading in Europe.
3. UK Natural Gas Futures ($UKNatGas.FUT)
These futures are a major reference for European gas markets. They provide exposure to market fluctuations in natural gas supply and demand.
4. Canola Futures ($CANOLA.FUT)
Futures in this category are heavily influenced by Canadian production, which dominates global supply.
5. Coal Futures ($COAL.FUT)
Essential for electricity generation. Help manage price risks, particularly in markets transitioning to renewable energy.
6. Steel Futures ($STEEL.FUT)
Steel futures allow traders to hedge against price changes driven by global demand fluctuations.
7. Milk Futures ($MILK.FUT)
These futures provide dairy producers and buyers with tools to manage volatile price movements.
8. Lumber Futures ($LUMBER.FUT)
Futures in this market are sensitive to housing demand and supply chain dynamics, offering valuable insights for investors.
Monthly Expiry of Contracts
All eight commodities futures contracts are subject to monthly expiry. Open trades automatically close on the contract’s expiration date. It ensures efficient market operation and seamless turnover for traders.
Effects on Users
This update will have these effects on traders:
Diversified Trading Opportunities
The new futures allow traders to explore multiple sectors, including energy, agriculture, and industrial materials. This diversification can help balance portfolios and reduce sector-specific risks.
Increased Market Accessibility
By offering contracts like UK Natural Gas and Power Futures, eToro enables access to key European energy benchmarks. They were previously harder to trade for retail investors.
Enhanced Risk Management Tools
Futures like Coal and Milk provide traders with instruments to hedge against price volatility. It offers greater control over market uncertainties.
Focus on Global Trends
Contracts such as Gas Oil (low sulfur standards) and Canola (dominated by Canadian supply) align with global production and regulatory trends. It allows investors to capitalize on market shifts.
Regular Market Turnover
Monthly expiries ensure traders remain engaged with current market conditions. It avoids outdated pricing and fosters an active trading environment.
Better Price Insights
Commodities like Lumber and Steel, influenced by housing demand and industrial activity, offer indicators for broader economic trends. It aids strategic decision-making.
Opportunities in Niche Markets
Milk and Canola Futures provide access to less conventional commodities. It allows traders to explore markets with unique demand-supply dynamics.
About eToro
eToro is a social trading and multi-asset brokerage platform. It allows users to trade and invest in varied financial instruments, including stocks, ETFs, cryptocurrencies, and CFDs. The platform has unique social trading features like CopyTrader. It lets users replicate the trades of experienced investors. eToro crossed over 35 million users by 2023. It serves in more than 100 countries.
Conclusion
The addition of these futures enhances eToro’s commodities offerings. Traders get access to vital markets for energy, agriculture, and industrial materials.
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