Commodities

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

InstrumentMT4 DescriptionMin. Price FluctuationLot size LeverageSwap Long (in points)Swap Short (in points)Trading hours (GMT +3)
Instrument:ALUMINIUMMT4 Description:ALUMINIUMMin. Price Fluctuation:0.01Lot size:25 TonsLeverage:50:1Swap Long (in points):-200Swap Short (in points):-200Trading hours (GMT +3):Mon-Fri 9:30 - 20:59
Instrument:BRENTMT4 Description:BRENTOILMin. Price Fluctuation:0.01Lot size:1000 BarrelsLeverage:50:1Swap Long (in points):-6.242Swap Short (in points):-5.776Trading hours (GMT +3):Mon - Thu 3:05 - 23:55, Fri 3:05 - 22:55
Instrument:CoffeeMT4 Description:COFFEEMin. Price Fluctuation:0.01Lot size:375 LBSLeverage:50:1Swap Long (in points):-23.606Swap Short (in points):-13.2814Trading hours (GMT +3):Mon-Fri 11:16-20:29
Instrument:COPPMT4 Description:COPPЕРMin. Price Fluctuation:0.0001Lot size:250 PoundsLeverage:50:1Swap Long (in points):-17.06Swap Short (in points):-12.2Trading hours (GMT +3):Mon-Fri 01:01-23:59
Instrument:CORNMT4 Description:CORNMin. Price Fluctuation:0.01Lot size:50 BushelsLeverage:50:1Swap Long (in points):-60.428Swap Short (in points):-21.498Trading hours (GMT +3):Mon-Fri 03:01- 15:45 | 16:30-21:14
Instrument:COTTONMT4 Description:COTTONMin. Price Fluctuation:0.01Lot size:500 LBSLeverage:50:1Swap Long (in points):-22.6012Swap Short (in points):-20.3814Trading hours (GMT +3):Mon-Fri 04:01-21:19
Instrument:OILMT4 Description:CRUDE.OILMin. Price Fluctuation:0.01Lot size:1000 BarrelsLeverage:50:1Swap Long (in points):-8Swap Short (in points):-7.2Trading hours (GMT +3):Mon-Fri 01:01-23:59
Instrument:GasolineMT4 Description:GASOLINEMin. Price Fluctuation:0.0001 Lot size:10,000 GallonsLeverage:50:1Swap Long (in points):-37.06Swap Short (in points):-32.2Trading hours (GMT +3):Mon-Fri 01:01 - 23:59
Instrument:NGASMT4 Description:NATURALGASMin. Price Fluctuation:0.001Lot size:10000 MMBtuLeverage:50:1Swap Long (in points):-5.6368Swap Short (in points):-5.434Trading hours (GMT +3):Mon-Fri 01:01-23:59
Instrument:PALLADMT4 Description:PALLADIUMMin. Price Fluctuation:0.01Lot size:100 OuncesLeverage:50:1Swap Long (in points):-80.6098Swap Short (in points):-68.9244Trading hours (GMT +3):Mon-Fri 01:05-23:59
Instrument:PLATMT4 Description:PLATINUMMin. Price Fluctuation:0.01Lot size:150 OuncesLeverage:50:1Swap Long (in points):-77.777Swap Short (in points):-72.7398Trading hours (GMT +3):Mon-Fri 01:01-23:59
Instrument:SugarMT4 Description:SUGARMin. Price Fluctuation:0.01Lot size:1120 LBSLeverage:50:1Swap Long (in points):-22.1418Swap Short (in points):-18.09Trading hours (GMT +3):Mon-Fri 10:31-19:59
Instrument:WHEATMT4 Description:WHEATMin. Price Fluctuation:0.01Lot size:50 BushelsLeverage:50:1Swap Long (in points):-127.0564Swap Short (in points):-103.84Trading hours (GMT +3):Mon-Fri 03:01- 15:45 | 16:30-21:14
Instrument:XAGUSDMT4 Description:XAGUSDMin. Price Fluctuation:0.001Lot size:1000 ozLeverage:100:1Swap Long (in points):-31.416Swap Short (in points):-14.9184Trading hours (GMT +3):Mon-Fri 01:05-23:59
Instrument:XAUUSDMT4 Description:XAUUSDMin. Price Fluctuation:0.01Lot size:100 ozLeverage:100:1Swap Long (in points):-43.09Swap Short (in points):-6.269Trading hours (GMT +3):Mon-Fri 01:05-23:59
Instrument:ZINCMT4 Description:ZINCMin. Price Fluctuation:0.01Lot size:25 TonsLeverage:50:1Swap Long (in points):-616.4Swap Short (in points):-618Trading hours (GMT +3):Mon-Fri 03:01-20:59

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 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 number of commodities such as oil and metals to fuel their growth and this demand translates to an increase in 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 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 the underlying asset of the CFD product to be traded.

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

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 CFDs 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.

You can use the following formula to calculate your Volume:                    

Number of lots * Contract Size * Open Price                    

E.G. For CRUDE.OIL                       

2 * 1000 * 78.90 = 157,800 USD                              

E.G. For XAUUSD                           

2 * 100 * 1891.30 = 378,260 USD                           

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.