How Asian Trade Market Investors Can Leverage Commodities in 2017
May 26, 2017

2017 has already proven to be an eventful year and yet, there are still many months ahead. Considering major factors such as the Brexit, the uncertainty of the Trump administration and the predicted economic slowdown of China, many traders (particularly within the Asian marketplace) are looking for methods to maximise their chances of walking away winners.

Commodities are always an excellent choice, as they are considered to be rather safe havens during an unpredictable financial climate. It therefore makes a great deal of sense that investors of all sizes are looking to diversify their portfolios by including such holdings. Let's examine some of the best ways to leverage these assets in the most effective manner.

Using Leverages: Is Smaller Better?

While the title of this article refers to leveraging the best strategies, it is just as important to briefly mention leverages in general. While larger profit margins are certainly attractive, there is naturally a certain amount of risk involved. One of the best ways to mitigate this risk is to trade with contracts of smaller sizes. This tends to limit the amount of exposure that is associated with a given position. Also, smaller contracts signify that the trader can purchase more at any given time. This helps to increase stability. Metals and e-micro currencies are two common assets to consider.

Going with the Gold

Gold is always an attractive investment option; particularly due to the fact that its industrial uses are pronounced throughout Asia. There are two main reasons why gold is expected to perform well in the coming months:

  • The United States dollar may continue wavering and possibly even enter into a bearish cycle.
  • The industrial demand of gold throughout Asia and Europe should continue to rise.

    We also need to mention the very real psychological factors behind gold investments. As the markets have been rather unpredictable, a growing number of individuals are looking to pull a portion of their funds out of open-market positions. So, it is perfectly reasonable to witness a rise in the price of gold from a medium-term perspective.

    An Eye on Lesser-Known Metals

    There is no doubt that gold is a popular investment option. However, we also need to keep in mind that other semiprecious metals are just as important in terms of industrial output. This is obviously pertinent to the Asian marketplace. This region is still set to lead global growth in spite of a Chinese slowdown. Metals such as silver, copper, platinum and even rhodium (an electroplating material) are all excellent options to consider. These are also great choices for those who may be on a tighter budget.

    The Right Platform

    Asian traders have access to some of the most valuable online portals to leverage the correct investment strategies. In a world defined by an increasing amount of fluidity, anyone trading commodities needs to adopt only the most powerful systems such as those offered through CMC Markets. With the proper amount of foresight, it is entirely possible to enjoy a successful trading year thanks to the profitable nature of these assets.