Commodities

Get access to diverse range of tradable commodities at the most favorable trading conditions. Check our contract specifications for each available commodity below.  

InstrumentNew InstrumentMin. Price FluctuationSize of 1 lotAv. Spread in PointsLeverageSwap Long in PointsSwap Short in PointsTrading hours (GMT+2)
Instrument:OILNew Instrument:CRUDE.OILMin. Price Fluctuation:0.01Size of 1 lot:1000 BarrelsAv. Spread in Points:6Leverage:50:1Swap Long in Points:-4Swap Short in Points:-3.6Trading hours (GMT+2):Mon-Fri 01:01-23:59
Instrument:BRENTNew Instrument:BRENTOILMin. Price Fluctuation:0.01Size of 1 lot:1000 BarrelsAv. Spread in Points:12Leverage:50:1Swap Long in Points:-2.121Swap Short in Points:-1.9888Trading hours (GMT+2):Mon 01:01-00:59 | Tue- Fri 03:01-23:59
Instrument:NGASNew Instrument:NATURALGASMin. Price Fluctuation:0.001Size of 1 lot:10000 MMBtuAv. Spread in Points:9Leverage:50:1Swap Long in Points:-2.8184Swap Short in Points:-2.717Trading hours (GMT+2):Mon-Fri 01:01-23:59
Instrument:XAUUSDNew Instrument:XAUUSDMin. Price Fluctuation:0.01Size of 1 lot:100 ozAv. Spread in Points:35Leverage:100:1Swap Long in Points:-15.545Swap Short in Points:-1.1345Trading hours (GMT+2):Mon-Fri 01:05-23:59
Instrument:XAGUSDNew Instrument:XAGUSDMin. Price Fluctuation:0.001Size of 1 lot:1000 ozAv. Spread in Points:76Leverage:100:1Swap Long in Points:-3.1694Swap Short in Points:-0.7592Trading hours (GMT+2):Mon-Fri 01:05-23:59
Instrument:SugarNew Instrument:SUGARMin. Price Fluctuation:0.01Size of 1 lot:1120 LBSAv. Spread in Points:8Leverage:50:1Swap Long in Points:-11.07085Swap Short in Points:-9.04498Trading hours (GMT+2):Mon-Fri 10:31-19:59
Instrument:CoffeeNew Instrument:COFFEEMin. Price Fluctuation:0.01Size of 1 lot:375 LBSAv. Spread in Points:49Leverage:50:1Swap Long in Points:-11.80304Swap Short in Points:-6.6407Trading hours (GMT+2):Mon-Fri 11:16-20:29
Instrument:CORNNew Instrument:CORNMin. Price Fluctuation:0.01Size of 1 lot:50 BushelsAv. Spread in Points:54Leverage:50:1Swap Long in Points:-30.21399Swap Short in Points:-10.74902Trading hours (GMT+2):Mon-Fri 03:01- 15:45 | 16:30-21:14
Instrument:WHEATNew Instrument:WHEATMin. Price Fluctuation:0.01Size of 1 lot:50 BushelsAv. Spread in Points:54Leverage:50:1Swap Long in Points:-63.5282Swap Short in Points:-51.91997Trading hours (GMT+2):Mon-Fri 03:01- 15:45 | 16:30-21:14
Instrument:COTTONNew Instrument:COTTONMin. Price Fluctuation:0.01Size of 1 lot:500 LBSAv. Spread in Points:13Leverage:50:1Swap Long in Points:-11.3006Swap Short in Points:-10.1907Trading hours (GMT+2):Mon-Fri 04:01-21:19

What is commodity trading?

Commodities are raw materials that can be grown or mined and later processed to form essential goods and services that are traded globally such as gold and oil.

 

Commodity trading allows investors to profit from price movements in the different types of commodity markets. CMTrading offers access to the following commodities:

  • Precious metals (gold, palladium, silver, platinum, and copper)
  • Energies (Crude oil, Brent oil, natural gas)
  • Agricultural (sugar, coffee, wheat, corn)

Trading commodities with CMTrading provides for higher profit potential through leverage, which can be utilized to get access to magnify a small initial investment and therefore increase profits. However, it’s important to note that leverage may also increase potential losses as well.

Commodity trading advantages

  • Portfolio diversification through different commodity markets
  • Low margin requirements and attractive leverage options
  • High intraday volatility

What affects the value of commodities?

The exponential global population growth is one of the main drivers of commodity prices. Fast-growing economies consume a large amount of commodities such as oil and metals in order to fuel their growth and this demand translates to an increase in prices.

 

However, when the economy slows down, the demand for commodities drops significantly which is likely to cause prices to drop as well.

 

Another factor that can affect the price of commodities is the strength of the U.S dollar. Since the dollar is the basis of international trade, when the value of the dollar appreciates, commodities become cheaper to buy and vice versa.

 

Commodity traders tend to monitor unemployment rates and GDP figures in order to gauge the strength of the dollar and therefore be able to predict how commodities like gold and oil will be affected.  

MORE INFO:

Instrument– The FX currency pair or underlying asset of the CFD product to be traded.

Country– The country that the equity or bond is based in.

Standard Contract size– The lot size traded on each platform (Note: CMTrading in MT4 represents the standard lot size).

Standard Spread– The difference between the BID & the ASK price quote for each instrument under normal market conditions.

Margin Per Lot– The required margin to open a single lot of each instrument (Note: It is shown in notional terms).

Overnight Interest Sell/Buy– The overnight interest debited/credited in daily % terms for each instrument.

Trading Hours– The time that trading is available for the specified instrument.

Exchange– The exchange of the underlying asset.

Risk Warning:
Trading CFD’s on margin carries a high level of risk, and may not be suitable for all investors.

The CommoditiesTrading Conditions display the Standard Bid-Ask Spread OR ‘Spread Over Market’ for Commodity Instruments unless otherwise stated. Standard Spreads are as stated under Normal Market Conditions while the ‘Spread Over Market’ is the Mark-up CMTrading adds to the Current Market Spread.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.

Example

For a 10 barrel Crude Oil Trade, with a Spread of 4 pips ($0.04), the calculation is as follows:

0.04 X 10 = $0.40*

CMTrading is compensated through the Bid-Ask spread, except when otherwise stated.

CMTrading does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The Commodities Trading Conditions display Margin Amounts as a Percentage (%).

Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*

* Margin Required is calculated in the Currency the Instrument is Denominated in.

Example

For a 10 barrel Crude Oil Trade, with a Market Price of $64.00 and a Margin Requirement of 2.00%, the calculation is as follows:

Percentage Margin Requirement: 10 x 64 x 0.02 = $12.80*

The Commodities Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily basis for holding a position open past the End of Day time. These are displayed in the “Overnight Interest – Buy” and “Overnight Interest – Sell” columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Daily Overnight Interest amount:

Swap calculation = No Of nights * Swap (buy or sell) *No of Lots*Point value

 

Example

For a 1 lot CRUDE OIL trade, with a Daily Swap Buy Rate of -4 and subject to charge for 1 day the calculation is as follows:

SWAP = 1x-4x1x10= -40 USD

Notes

  • Point value = Contract size *No of Decimals in the Pair.

For CRUDE OIL, the price is denominated in 2 decimals. Point value = 1000(contract size) * 0.01 (number of decimals) so the point value for CRUDE OIL is 10

For COPPER the price is denominated in 4 decimals.

Point value = 250 (contract size) * 0.0001(number of decimals) so the point value for COPPER is 0.0250

  • Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.

 

Note:

Positions that are held open over Wednesday night will incur a triple swap charge. This is to account for the settlement of trades over the weekend, where no swap rates are charged since the market is closed.

Did you know…?

The commodities market in general is highly popular among traders and investors, however, oil is undoubtedly the most actively traded commodity in the financial markets.

 

Oil is what fuels the global economy and therefore it’s in high demand throughout the year and especially when the economy is thriving. Oil pricing is also highly volatile and therefore traders can leverage the rapid price swings in oil prices and profit substantially.

 

Trading oil and other commodities through CFDs (Contracts for Difference), is highly accessible with a forex trading account and it provides the added advantage of being able to buy or sell at any given time.

 

When the economy is booming, traders can buy oil contracts to profit from the potential surge in prices, while in times of crisis or recession, traders can sell Brent or Crude oil and enjoy equally high returns.

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