The commodity market is one of the oldest financial markets. Today, traders have the option of trading commodities on the futures market or through derivatives such as Contracts for Difference (CFDs). Trading commodities through a CFD service has several unique features. These include lower capital requirements than trading with futures and being able to trade on both rising and falling markets. In this article, we will go through the ins and outs of trading Commodities with CFDs.
Futures on Commodities
Traditionally, the futures market has been the most direct way to access trading in commodities. Futures contracts are legal agreements to Buy or Sell a particular commodity at a predetermined price and at a specified time in the future, and they generally demand a larger allocation of capital.
CFD on Commodities
Another method for the modern-day commodities investor is to trade via contracts for difference (CFDs). CFDs are considered an efficient way to trade popular commodities - such as Oil, Natural Gas, Gold or Silver - due to higher leverage, which enables a trader to use less capital to gain greater exposure to an underlying instrument. CFDs are a derivative product that allows traders to speculate on the price movements of the underlying instrument without taking actual ownership of the product itself.
We offer CFDs on a wide range of cash (spot) and futures commodities instruments, including Energies, Metals. Agricultures and Bonds
Leverage = Up to x500
Minimum Order Size = 0.01
Minimum Deposit = 100USD