Commodity Trading Long and Short and Commodities Trading Charts
In commodities trading, there are two types of commodity trades, these are:
- Long (buy) - long is if the commodity trend is buy/bullish.
- Short (sell) - short is if the commodity trend is sell/bearish.
Buying/Long and Selling/short in Commodities
Both terms in Commodities, refer to things we do when open a commodities trade.
Buying Long - commodity term to use when buying and when opening a commodities trade.
Selling short - commodity term to use when selling and when opening a commodities trade.
Long - Long is another term used to refer to buying in commodity, If a trader goes long it means that he buys the commodity instrument that is heading in an upward trend direction. When the commodities trading price is moving in an upward commodity trend the trend is referred to as bullish commodity trend.
Short - Short is a term used to refer to selling of a commodity instrument that is going in a downward trend direction. When the commodities trading price is going downwards then it is referred to as a bearish commodity trend.
Basically the term, "selling short" can be refer to selling in the commodity markets. Selling short is used to transact a commodity instrument that is predicted to depreciate in value compared to another, when this commodity instrument is sold then it is the same as not holding value in this commodities and holding the same value in another form against which this commodity instrument is traded against - mostly US Dollars.
Buy/Long
If the commodities trading price is going up we buy, this is referred to as going long - Therefore long is just another name for buy. When the commodity market commodity trend is going up it is referred to as bullish, this is when a buy commodity trade is placed. A bullish commodity trend is identified by drawing an upward commodity trendline on a commodity chart. The example illustrated and explained below shows a long/buy commodities trade signal.
Buy/Long
Sell/Short
If the commodities trading price pair is going down we sell, this is referred to as going short. When the commodity market commodity trend is going down it is referred to as a bearish. The example illustrated and explained below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward commodity trendline on a commodity chart. The example illustrated and explained below shows a short/sell commodities trade signal.
Sell/Short - Commodity Trading Buy Trade and Commodity Trading Sell Trade
Commodities Trading Charts
A commodities trading chart provides a visual representation of commodities trading prices (drawn on the y-axis) against time (drawn on the x-axis) for commodity. The movement of commodities trading prices is drawn on these commodity charts. The commodity chart can be drawn as candlestick commodities charts like the one below or as line commodities charts or bar commodities charts.
Commodities Trading Chart - Candlesticks Commodities Trading Charts
The three common types of commodity charts used in commodities trading are:
- Candlesticks Commodities Trading Charts
- Line Commodity Trading Charts
- Bar Commodities Trading Charts
These 3 are explained in the topic Commodities Trading Chart Types.
Commodity Trading Platform
This is the commodity software that is provided by a broker to help commodity traders place their commodity transactions. Once you download and installs this commodity software on your computer you can then begin to trade in the Commodities market. All commodity trades are executed through this commodity platform. If you want to learn a commodity platform, MT4 Commodities Trading Platform is a good commodity platform to start with.
To set these commodities trade orders, open MT4 Commodities Trading Software, open a 'chart', right click on the 'chart', choose 'New Order', then choose the commodity order either sell or buy as shown below. (Keyboard Short Cut Keys - Press F9 Key)
Setting Buy Long Commodities Trading Order and Sell Short Commodities Order in MetaTrader 4 Platform
