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What are the disadvantages of commodity trading?

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What are the disadvantages of commodity trading?

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  1. WHAT ARE THE DISADVANTAGE S OF COMMODITY TRADING? Speed of trading: Traditionally, commodities are pit traded. To trade, a speculator would need to contact a broker by telephone to place the order, which then transmits that order to the pit to be executed. Volatility - The commodity market is the most volatile in nature, where the commodity price fluctuated within the second. The commodity price depends on the market's demand and supply, but one thing to keep in mind is that the commodity market price is elastic. Lower return - The broker is paid the leverage amount to the traders, and if the traders take out some profit from the market but the one thing which is the primary take out some part of the profit and give it to the broker because initially, the trader takes the leverage from the brokers. High leverage - The leverage amount is highly risky for the traders because if anything happens in the market, you could bear a loss and return the money which the broker pays. It is the major disadvantages of commodity trading. BEST BROKER Investby In the modern era, Investing has become an essential part of life. Everyone wants extra income rather than their regular income. So nothing is better than investing for extra income. The Forex market is one of the rapidly growing markets. Here we discuss one of the best forex brokers Investby Review 2021. H T T P S : / / F U N D S - M O N E Y . C O M / I N V E S T B Y - R E V I E W /

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