Trading CFD commodities like oil, gas and coffee gives you access to those markets without having to buy anything outright. Oil is one of the most popular markets to trade, so much so that many traders nickname it “black gold”. We also offer natural gas, and a range of 'soft commodities' too.
Key benefits of CFD commodities trading
Commodities are raw materials, like gold or wheat, used in agriculture, commerce and commodity markets.
Commodity trading involves buying and selling raw materials on the commodities market.
To trade commodity CFDs, you'll need to pick a commodity, decide on your position size and choose your leverage.
When you trade Commodities, you own the asset itself. Trading Commodities CFDs, on the other hand, allows you to speculate on price movements without ever owning the asset.
A key advantage of CFDs is that you can enter contracts for prices falling (going short), as well as rising (going long).
All trading comes with risk and commodities CFD trading is no different.
We strongly encourage you to take your time, do your research, and practice good risk management.
The Alpari Academy is a good place to start learning about investing in commodities via CFDs trading and we have excellent analysis tools that can help you balance risk with reward.
Leverage is like a loan of sorts, based on ratios. For example, if the leverage offered is 1:100, then for every $1 you put down as capital on your trade, we'll 'lend’ you $100.
This means that you have access to larger trade sizes without the capital outlay. Leverage is high risk, and you should be aware that while it can boost any potential profits exponentially, it can also increase losses.
Please don’t enter a CFD trade without understanding the potential financial risk.
Commodities CFDs are available on all Alpari trading accounts, but contract specifications in terms of spreads, lot sizes, swap values and leverage may differ from account to account, and instrument to instrument.
Typically, the higher-tiered accounts require larger deposits, but offer more favourable conditions.
With Alpari, understanding exactly how much margin you'll need to trade commodities is simple.
We offer floating margin - meaning your margin requirements will vary depending on the size of your trade.
To keep track of your required margin, just head to our Margin Calculator, enter your account type, market, position size, and hit calculate.