What are the benefits of commodity market trading?
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Traders can derive the following benefits of commodity trading:
Commodity trading allows investors to diversify their investment portfolios by adding a different asset class to them.
Commodities assist traders in hedging their investments against inflation since the prices of commodities typically rise during high inflation periods. Hedging allows investors to maintain their purchasing power parity.
Geopolitical events like natural disasters, economic crises, wars, etc., lead to scarcity of commodities, and by extension, increased prices. Trading commodities allows traders to guard their losses by leveraging price swings strategically.