IRON TRADING

Iron ore trading is the practice of speculating on the price of iron ore in order to make a profit – usually via futures, options, spot prices, contracts for difference, or via shares and exchange-traded funds (ETFs).

As with other derivatives, the aim of iron ore trading is to predict the direction the market will move. The further the market moves in the direction you’ve predicted, the more you’d profit and the more it moves against you, the higher your losses.

Traders might be bullish on iron ore if there’s an optimistic outlook on economic growth and GDP, which usually leads to increased industrial activity and demand for steel.

On the flipside, in periods of economic contraction and slowing demand for iron ore, traders might be bearish on the market price.iron trading