Our platform also offers traders the option to spread bet or trade CFDs on different collections of commodities, such as our Agricultural Index, Energy Index and Precious Metals Index. Commodity indices give traders the opportunity to diversify investment portfolios by having exposure to multiple commodities in one trade.
Our Precious Metal Index enables you to trade on palladium, as well as a number of other precious metals, through a basket of commodities. This product tracks the underlying prices of the commodities, all in one single position. Palladium makes up 15% of the index, and its price action would have an effect on the overall value of the index. If palladium’s price rises, then the overall value of the index may increase, and vice-versa.
The Precious Metal Index allows traders to have increased exposure in palladium as well as other metals without placing complete reliance in one commodity. However, it is important to be aware of the fact that other precious metals, such as gold, can be rather volatile assets in the short-term, which may have a subsequent effect on the basket’s value.