Commodities

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

INSTRUMENT MT4 Symbol Currency Exchange Units Typical Spread (Pips) Margin Standard Contract Size Trading Hours GMT
Gold XAU USD NA Troy Oz 50 1.00% 100 23:01-21:59
Silver XAG USD NA Troy Oz 4.6 1.00% 1000 23:01-21:59
Platinum PLAT USD NA Oz 45 2.00% 50 01:01-23:59
Paladium PALAD USD NA Oz 200 2.00% 100 01:01-23:59
CORN CORN USD CBOT Bushels (100) 15 2.00% 50 01:01-13:45 &14:30-19:14
WHEAT WHEAT USD CBOT Bushels (100) 15 2.00% 50 01:01-13:45 &14:30-19:14
COFFEE COFFE USD ICE US Ilbs (100) 10 2.00% 375 09:16-18:29
SUGAR SUG11 USD ICE US Ilbs (100) 6 2.00% 1120 08:31-17:59
GAS NGAS USD NYMEX mmBtu 6 2.00% 10000 23:01-21:59
Crude Oil CL USD NYMEX Barrel 6 2.00% 1000 23:01-21:59
Brent Oil BRENT USD NYMEX Barrel 6 2.00% 1000 Mon 01:01-23:59 Tue to Fri 22:00-22:59 &01:01-22:00
Copper COPP USD COMEX Ilbs (100) 10 2.00% 250 23:01-21:59

* Overnight interest for buy and sell positions is -0.0028%

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. CM Trading 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 CM Trading 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: CM Trading 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 CM Trading 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*

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

CM Trading 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 Overnight Interest amount:

Trade Size x End of Day Market Price x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*

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

Example

For a 10 barrel Crude Oil Trade, with an End of Day Market Price of $50.00 and a Daily Overnight Interest Buy (or Sell) rate of -0.0028%, and subject to a charge for 1 day, the calculation is as follows:

10 x 50.00 x -0.000028 = -0.014 = -$0.01* rounded.

Note: CM Trading platforms display overnight interest (swaps) in annualised terms.

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.