Commodities are the natural resources that form the building blocks of the global economy. Soft commodities are typically agricultural (such as wheat and sugar), whereas hard commodities are metals or energies (such as silver and gas).
The commodity markets are driven by many factors, including supply and demand, weather, economic and political events, and the U.S. dollar. As a result of these factors, commodity prices can fluctuate significantly.
Trading commodity derivatives through CFDs means you are only trading the price movement and not the actual commodity. With CLM you can trade the most popular commodities through the world renowned MetaTrader 4 platform.
Commodities - Product Details
|Instrument||Symbol||Spread||Lot Size||Trading Hours*||Break Time*|
|Spot Gold||XAU/USD||Variable||100 oz||24 hrs||23:59 - 01:01|
|Spot Silver||XAG/USD||Variable||5,000 oz||24 hrs||00:00 - 01:00|
|Spot WTI Crude Oil||US-Oil||Variable||100 Barrels||24 hrs||00:00 - 01:00|
|Spot Brent Crude Oil||UK-Oil||Variable||100 Barrels||24 hrs||00:00 - 03:00|
* All times shown are GMT+2 (server time).
The crude oil markets are one of the most closely watched by traders and investors worldwide. Crude oil is used as an international pricing benchmark because of its liquidity and price transparency.
Spot gold is the go to commodity when markets are in turmoil. Gold is considered a ?safe haven? investment, and has traditionally been used as a hedge against inflation.
Spot silver has played a significant role in affecting currencies, and represents another method that investors use to hedge currency risk as the U.S. dollar weakens.
Benefits of CFDs Trading
Commodities trading provides you an easy and cost-effective way to trade one of the most liquid markets in the world. Benefits include:
- Trading with leverage
- Lower trading costs
- Hedging capabilities
- Competitive spreads
How Does It Work?
Commodities are traded in exchanges, such as the New York Mercantile Exchange (NYMEX), and the London Metal Exchange (LME).
When trading commodities through CFDs you are only trading the price movement and not the physical commodity, allowing you the flexibility to trade a fraction of a standard contract.