Platinum Trading Options – What You Need to Know

Platinum is one of the most valuable substances on earth. It is more valuable than gold and silver. Because of the high demand for platinum and its corresponding low supply, the metal is considered to be more valuable than gold and silver. Most platinum produced (about 40%) is used in automobile production; the rest is used for jewellery production, industrial uses and so forth. Moreover, 5% of the annual demand for this metal is for investment purposes.

Interesting properties of platinum

Only 5 million troy ounces of platinum are mined every year, whereas 17 times of this quantity (85 million troy ounces) represents gold mining. Furthermore, 547 million troy ounces of silver are mined every year. 

Platinum is mostly desired for its interesting metallic properties. The metal’s high resistance to temperature makes it suitable for use in combustion engines. Over 40% of platinum produced today is used to reduce emissions in diesel engines. Its non-reactivity to chemicals and conductivity makes it suitable for car engines.

 

Why trade platinum?

The numerous uses of platinum make it a precious substance for traders. Platinum is in high demand for jewellery making. It is also used as a catalyst converter. Also, platinum is very useful in the medical industry, and it can also be used in making thermometers, electrodes, and electronic devices.

 

How to trade platinum CFDs

Platinum is mostly traded for its contract for difference (CFD) and not for the actual physical instrument. Traders only benefit from the fluctuation in the commodity price and not from the actual instrument’s sale. To trade platinum CFDs, you would need to choose a broker. Capex.com comes to mind when you need expert analysis, a superb overview of your stock, etc. You can sign up on Capex.com to get started.

 

There are so many advantages of trading contracts for difference (with disadvantages, as well, as trading CFDs with leverage increases risks). Since platinum’s value can change within minutes, traders can take advantage of these changes. Trading platinum CFD allows you to take advantage of the leverage (but also with a higher risk of loss). 

However, it is not advisable to trade CFDs if you dont know how it works. While you could make a lot of profit, you can equally lose a lot on CFDs. CFDs come with a lot of risks and these risks offer an equal opportunity to make a huge profit and lose.

Comparing Platinum Trading to S&P 500

While gold is considered a more popular investment option than platinum, the latter is rarer than the former. Platinum is mined mainly in two countries, Russia and South Africa. This means that the supply of platinum could fluctuate more than that of gold. However, both precious metals are relevant investment options, especially during harsh economic conditions when the S&P 500 and other investment options crash. 

These precious metals are affected by the law of demand and supply, but they rarely go down during these economic conditions. Furthermore, unlike the S&P 500, which measures stock only for top U.S. companies, the platinum investment may have more global coverage. Platinum is traded on the London Platinum and Palladium market and the New York Mercantile Exchange (NYMEX).

There are several investment vehicles associated with platinum. On the London stock exchange (LSE), platinum is traded as an ETF. You can also invest in platinum coins and bars. You can also buy platinum just like any other foreign currency. This is provided by most Swiss banks. 

 

Where CAPEX.com comes in 

CAPEX.com provides a unique platform to trade platinum. The platform allows you to trade CFDs with leverage. With the features provided by CAPEX.com, you can set up price notifications and receive analysis from top providers worldwide on the market trends and situation. Furthermore, CAPEX.com also offers a lot of materials and tools to help traders comprehend trading CFDs on platinum. You can learn how to trade in the trading academy and several webinars available on the platform. You can also take advantage of the IPO and market analysis to enhance your education. 

 

Why you should trust CAPEX.com

Established in 2016, CAPEX.com quickly grew to become a renowned trading platform for several financial instruments. It was also nominated for the Best Dealing Room and the Most Transparent Broker in 2018.

One of the core principles of CAPEX.com is transparency, and this has been maintained since it was founded. When it comes to your funds, CAPEX.com ensures that the best standards are maintained. This is why the best technologies and standards are maintained to keep your funds safe. Also, your funds are stored in reputable banks. This ensures that they are secure and available to you anytime you need them. You can also quickly deposit and withdraw money on the platform; however, these have to be done through internationally recognized methods.

 

How to trade CFDs on platinum on CAPEX.com

As with any other investment instrument, trading platinum on CAPEX.com is super-easy. The first step is to create an account on the platform. After creating the account, you will be assigned a demo and live account. If you want to learn the process, you can switch to the demo account and practice various trading strategies. This will not charge you real money, but it allows you to understand how the trading process works.

When you are comfortable with the process, you can easily switch to your live account. You’ll have to use real money to trade your suitable currency. CAPEX.com provides a lot of tools to make the process easy.

 

Conclusion

Are you interested in trading CFDs on platinum? CAPEX.com provides a lot of useful tools and resources to make the process easy, seamless and efficient. You can also trade a lot of other CFDs on currencies and various instruments available on the platform. CAPEX.com allows you to have an eye over the entire process. You can easily set up the notification process and efficiently manage these with just a few mouse clicks.

 

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

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