How to trade & invest in oats for beginners 2025

Trade your favourite markets with our top-rated broker, eToro.

eToro 4.6/5

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Visit site

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

In this guide, we explore the foundational aspects of oats investments, from the factors that drive oats prices to the various investment vehicles available, such as spot markets, futures contracts, stocks of oats companies, and exchange-traded funds (ETFs).

Can I invest in oats?

Yes, investing in oats is straightforward and available to anyone using an online trading platform. Investing in oats and trading oats represent different approaches with varying time horizons. 

Oats investing involves a long-term perspective with the main aim of growth and diversification. oats trading, on the other hand, focuses on short-term price movements for quick gains. 

You can invest or trade oats through many different avenues, including oat stocks, oats exchange traded funds, or CFDs. To decide on the best approach, you will need to consider your goals and time horizon before aligning your strategy with your specific objectives. 

Where can I trade oats online?

Before you invest in oats you’ll need to register with an online broker. Our experts have selected some of the top oats trading platforms. Check out any of the links below to get started in just a few minutes.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

How to trade & invest in oats

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

Visit site

What is oats investing?

Oats investing gives investors a unique avenue for portfolio diversification and capital growth. As an investment, oats can serve multiple purposes. 

Many investors use oats as a store of value, as a way to hedge against inflation, or for diversification. oats’s historically low correlation with other assets like stocks and bonds makes it a top choice for investors looking to reduce overall risk. 

Although oats prices can fluctuate in the short term, investors generally focus on the potential for steady and long term growth. This long term focus is what differentiates oats investors from traders. When trading oats, you are more interested in short term price fluctuations than long term performance. Before taking the first step, it’s important to learn how to invest in oats and understand market dynamics. 

What is oats trading?

Oats trading can take many forms. Speculators, or retail traders capitalise on short term price fluctuations to earn profits. Producers or other entities involved in the oats industry can use trading strategies to hedge against future price changes and ensure safety for their business operations. 

Long term investors look to hold positions for extended periods to profit from oats’ future growth. Futures contracts, spot markets, options, and various derivative instruments are standard methods for trading oats. In the following sections, we’ve explained the different ways you can trade oats so you can find the most suitable method. 

Ways to invest in oats

There are several options available when it comes to investing in oats and the one you should pick depends on your budget, experience, and the timeframe for seeing returns. Here’s a look at the various ways you can invest in oats.

• Invest in oats stocks. Perhaps the simplest way of gaining exposure to oats is investing in public companies that are involved in the oats industry. The share price of these companies will correlate somewhat with the price of oats. You will mainly be looking at companies such as manufacturers, producers, and sellers. 
• Invest in oats ETFs. Exchange traded funds (ETFs) are funds that trade on the stock exchange like any ordinary stock; however, they contain a selection of different stocks, providing a diversified blend for investors. You can also invest in oats commodity ETFs, which are funds that have their value pegged to physical oats. Our guide on the best agriculture ETFs has a selection of funds to invest in. 
• Invest in oats funds. Mutual funds are created when capital from many different investors is pooled together and a fund manager takes control, using their expertise to decide what oats assets to invest in and when to sell them. This can be a great way of investing in oats without the strain on your own knowledge and experience.
• Trade oats futures. Futures contracts are the most common way to speculate on short term price changes. They are an agreement to make a trade at a future date for a pre-agreed price. oats futures contracts require a detailed understanding of what impacts short term prices, and are most suited to someone with experience in the market.
• Trade oats CFDs. Contracts for Difference (CFDs) are a popular way to speculate on oats price movements without having to own the physical asset itself. This makes them ideal for commodity trading, where it’s not practical to own and store large quantities of oats. With CFDs, you can profit from both rising and falling prices. CFDs also offer leverage, which can amplify your exposure to oats markets. 
• Trade oats options. Options let you buy or sell oats contracts at a predetermined price on or before a specific future date. oats options trading requires some expertise but allows traders to capitalise on price changes and manage risk, which makes it popular with people familiar with the oats market.

How to invest in oats – a step-by-step guide

Investing in oats is a simple process. Before you begin, you’ll need to register with an online broker to access the oats market. Follow the steps below to learn how to invest in oats. 

What to consider before making an oats investment

When investing in oats, it’s important to approach with a well-thought-out strategy. Considering a range of factors before investing can save you time and money in the long run. Use the helpful tips below to plan your oats trading or investing strategy. 

What are your investment goals?

Before you begin, you should clearly define your investment objectives. Are you seeking quick gains, long term wealth appreciation, or steady income? Knowing your goals before you start can help guide you in your strategy and also which oats derivative to use. 

Do oats suit your risk tolerance?

Commodities like oats often experience large price fluctuations due to supply and demand dynamics, global events, and economic changes. Make sure you’re comfortable with the potential for market fluctuations. If you’re a short term trader, then ensure you’ve checked the historical price chart for oats to determine if it’s volatile enough for day trading. 

Will investing in oats add diversification to your portfolio?

For long term investors, diversification is one of the core principles to follow. When you invest in oats and add it to your portfolio, make sure it complements your existing investments. For example, if you already own several oats stocks, you may be better off choosing another commodity. 

Take the time to study the oats market dynamics. 

Like many commodities, oats have unique characteristics and supply and demand fundamentals. To trade oats, studying the broader oats market, especially historical price trends is essential. Before you invest in oats, you will need to understand the factors that influence their value. 

Choose the right investment vehicle.

We’ve already discussed the options available to you to buy oats. Each has its own advantages, so you should select the one most suited to your investment goals. For example, trading oats is best done via futures, options, CFDs, and spot. If you invest in oats, stocks or ETFs are the way to go. 

How does the oats market work?

The oats market functions similarly to other commodity markets. However, not all commodities move in the same way and oats has a number of unique features that make it independent. Below are some of the key factors at play.

• Production. Oats are mostly grown in cool, moist regions like Europe, Russia, Canada, and the Northern US. The typical cycle from seeding to harvesting is only 12 weeks, although can take much longer. Weather conditions and soil quality also impact harvests. 
• Milling and processing. Once oats have been harvested, millers trim the grains and then apply heating, cutting, and rolling techniques to produce various finished products. 
• Transportation. Once a final product is prepared, oats are transported across the world to customers like livestock feedlots and food manufacturers. 
• Supply and demand. Like all markets, the biggest driver of oats prices is the principle of supply and demand. Many factors impact the supply and demand of oats, including production levels, consumption, and even geopolitical events. 
• Exchanges. Oats are traded on several exchanges where buyers and sellers transact. The price of oats may be slightly different between exchanges. The main oats exchanges are the CBOT and Eurex.
• Hedging. The oats market is often used for hedging purposes. Producers of oats may use futures contracts to protect against future price fluctuations, resulting in stability for their business practices. 
• Speculators and investors. Retail investors and traders can impact oats prices. This is especially the case for short-term movements, where speculators provide liquidity to the market and impact near-term price dynamics. 

Are oats a good investment?

This really depends on the key supply-demand drivers, the status of the global economy and your own needs and desires as an investor. oats has many benefits that make it a good choice for investors. Its main advantage is its role in diversification. It also has a low correlation with traditional assets such as stocks and bonds, which means if you include oats in your portfolio, you’ll spread risk and add stability. 

You can also use oats as a hedge against inflation. When inflation rises, the value of oats historically appreciates. The real world use of oats also creates constant demand. However, it’s important to remember that oats investing is not totally risk-free. 

A wide range of factors influences its price, so you’ll need to have a solid understanding of market dynamics before investing. 

What are the risks of trading oats?

Trading oats has the potential for significant rewards but also carries risks you need to be aware of. These risks are the same across the overall commodity market, but for oats, several more specific ones apply. Below, we’ve explained the main risks of oats investing.

• Volatility. The oats market is known for its price volatility. Compared to other markets, the price of oats can widely fluctuate daily. It can be costly if you’re unprepared for the volatile nature of the oats market. 
• Macroeconomic factors. Oat prices are affected by several macroeconomic factors, such as industrial demand, inflation, interest rates, dollar strength, and geopolitics. Before trading oats, you should have a good understanding of these. 
• Oats have no yield. Unlike with other investments such as bonds or dividend stocks, oats do not provide any income yield. So, any returns you make rely entirely on its value increasing over time. You may encounter long periods of flat prices that can reduce your profits. 
• Low liquidity. In general, commodity markets have less liquidity than more mainstream assets like stocks or currencies. Low liquidity can be problematic, especially if you’re a trader, as you may have wide bid-ask spreads, which could impact the ability to enter or exit positions. 
• Regulatory risks. Government policies can play a role in the way oats prices move. Export restrictions or changes in tax regulations could introduce unforeseen risks. 

Bottom line

Oats investing offers the opportunity for diversification and portfolio growth. Oats have potential benefits as a store of value and hedge against inflation, but it’s essential to weigh the risks such as price volatility and market uncertainty before investing. 

One of the key benefits of the oats industry is the various ways you can get involved. There is an investment vehicle for everyone, from oats stocks and ETFs for long term investors to oats futures and CFDs for short term traders. A trusted and regulated trading platform is a must if you want to navigate the oats industry successfully. 

FAQs