eToro Cotton Trading
How to Trade Cotton on eToro?
You can buy and sell cotton CFDs and also copy professional commodity traders with eToro's user-friendly investment platform.TRY NOW WITH REAL ACCOUNT Get a $100,000 Practice Account
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Cotton is a sought-after material that investors can invest on through buying of stocks, ETFs, futures and CFD trading. Widely used in the textile industry as an integral component of clothing and household items, the fibers created from it also produces cottonseeds which also has its own variety of uses. For comparison, the worldwide production of cotton can supply each human being on Earth at least 20 t-shirts made from it every year.
Cotton is harvested as a soft staple fiber that grows around the seeds of the genus Gossypium, a plant from the mallow family Malvaceae. These plants are often grown in tropical regions around the world with the widest diversity of wild cotton species found in Africa, India, Mexico and Australia.
The first recorded cultivation of cotton for fabric use dates to prehistoric times. Archeological finds of fabric remnants preserved in copper beads was found at the Neolithic dig site of Mehrgarh in Pakistan is believed to date back to 5500 BC.
Today, world production of cotton averages 25 million tonnes every year with India being the world's largest producer.
Investing on commodities help diversify and lower the risk of one's investments. By adding a commodity to your portfolio, you end up owning an additional asset that acts differently in the market. Another reason that makes this commodity as an appealing investment is because it serves as a hedge against a weak US dollar currency and the inflation. Regardless of market devaluation, it will continue to be harvested and demand for this commodity will remain thus making it retain its steady value even in times of inflation.
Many investors are trading via contracts for difference (CFD) and by using this method, investors can speculate on the value of a commodity without needing to own a physical asset.
There are several ways of engaging in CFD trading of cotton. All you need to do is find a reliable broker or CFD trading platform such as eToro to open an account and deposit your fund.
Trading this commodity in eToro's CFD trading platform doesn't require any storage fees since you won't be trading any physical assets.
If you're considering to invest or trade COTTON CFDs, then it would be much simpler to click the button below. This will take you directly to eToro's trading page for this agricultural commodity.
But before you can trade cotton on eToro, you'll need to open an account with them and this will only take a few minutes to accomplish.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% 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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