Commodities

Trade a wide range of commodities, such as energy, metals and agricultural products. FX Future Trade provides the traditional CFD trading system MT5

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Trade CFDs on Commodities withFX Future Trade

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for our full list of Commodities and typical spreads

Trading commodities CFDs (contracts for difference) is a great way to diversify your portfolio and hedge risks. FX Future Trade has carved a niche for itself in the commodity trading market in Europe, offering the optimal trading experience.

Gain exposure to futures contracts, choosing from a wide variety of products, while benefiting from the latest real-time technology and available comodity prices. When you choose to trade commodity CFDs with FX Future Trade, you get access to commodity prices worldwide with high execution speeds, low slippage,deep liquidity and tight spreads.

Trade CFDs on a wide variety of global commodities, including gold, silver and oil with a regulated broker provider giving you access to different asset classes on the same platform or a range of platforms as well as sophisticated risk management tools and trading tools.

What are the benefits of commodities trading?

Trade on spreads from 0.0 pips & leverage up to 20:1
Choose from a wide range of commodities, such as energy, metals and agricultural products
Enter and exit trades whenever you want to, 24/5, across almost all commodities markets
Trade in any direction you think the markets will go, short or long, maximising trading opportunities
Get access to pre-open price action and gauge market direction with cutting-edge tools
Hedge Risks - Hedge your investment risks with high value assets, like gold and silver
Benefit from low margin, low-cost trading, without compromising execution

What is the best Platform to trade Commodities?

MetaTrader 4. The world’s most popular trading platform.

Discover the benefits of Commodities trading on one of the most powerful trading platforms available, MetaTrader 5 (MT5). Available across desktop and mobile platforms the MetaTrader 5 (MT5) platforms is ready when you are.

Spreads from 0.0 pips & leverage up to 20:1

Customisable interface, including colours of technical indicators

One-click trading

Live price streaming on Live accounts and Demo accounts 128-bits encryption for secure trading

Expert Advisors (EAs)

Customisable alerts

Compatible with iOS, Android and Mac devices

Are there more platform options?

We recommend MT5 for Commodities but a range of products

6 Reasons to Choose FX Future Trade

A regulated Forex broker.

Regulated Broker

Negative balance protection
& regulation in Cyprus

Tighter Spreads

Market leading spreads from
0.0 pips, 24/7

Faster Execution

Low latency
execution under 40ms*

Advanced Platforms

MT5 & WebTrader with
superior client portal

24/5 Multilingual Customer Support

Award-winning support &
personal account managers

Established in 2018

In Cyprus
a regulated broker

What is Commodities Trading?

Commodities trading represents the buying and selling of set quantities of homogeneous, or near-homogeneous assets. Popular commodities include Brent Crude Oil, Gold and other precious metals and soft commodities such as coffee, cocoa, soya etc. Price movements in commodities are usually seen as bellwethers for the overall health of the industry that produces/consumes them.

Commodity prices can be impacted by factors such as adverse weather, seasonal availability, natural disasters and other non-market factors typically found in other financial instruments. Typically, commodities trading in commodities can be either speculative or for hedging purposes. Traders can trade commodity markets to express their outlook on certain industries or to hedge their trading portfolio.

Through careful analysis, CFD traders predict the potential direction of commodities prices and attempt to capture gains based on price fluctuations. The market is open 24 hours a day, 5 days a week.

An Example of Leveraged
CFD Commodities Trading

Suppose you want to trade CFDs, where the underlying asset is the XTIUSD a commodity, also known as Crude Oil. Let us suppose that the XTIUSD is trading at:

You decide to buy 2,000 barrels of XTIUSD because you think that the XTIUSD price will rise in the future. Your margin rate is 10%. This means that you need to deposit 10% of the total position value into your margin account.

Now, in the next hour, if the price moves to 83 / 83.10, you have a winning trade. You could close your position by selling at the current price of USD 83

In this case, the price of crude oil moved in your favor. But, had the price declined instead, moving against your prediction, you could have made a loss. If that loss reduced your free equity to less than USD 16400, your broker would have issued a margin call and will close all your trades if the equity falls at 50% of 16400.

If the price of XTIUSD	To	You could Gain or Lose for a Long Position	Resulting in a Return of the Initial Margin
Rises by 1%	82/82.92	USD 1640	10%
Declines by 1%	81.18/81.20	-USD 1640	-10%

CFD Commodities (MT5)

Symbol	Product	Standard A/c
Symbol	Product	Min	Avg
COCOA	Cocoa vs US Dollar Cash	-	17.47
COTTON	Us Cotton No.2 vs US Dollar Future	-	2.19
SUGAR	Us Sugar No.11 vs US Dollar Future	-	2.06
COFFEE	US Coffee vs US Dollar Future	-	0.74
CORN	Corn vs US Dollar Cash	-	0.71
SOYBEANS	Soybeans vs US Dollar Cash	-	1.11
WHEAT	Wheat vs US Dollar Cash	-	2.11
WTI	West Texas Intermediate Crude Oil vs US Dollar Future	-	0.02
XBRUSD	Brent Crude Oil vs US Dollar Cash	-	0.03
XNGUSD	Natural Gas vs US Dollar Cash	-	0.02
XTIUSD	West Texas Intermediate Crude Oil vs US Dollar Cash	-	0.03
BRENT	Brent Crude Oil vs US Dollar Future	-	0.03

Commodities Markets Introduction to

Learn more about major commodity markets

Gold Markets

Throughout history, gold has always been seen as a valuable commodity, and for good reason. In addition to being an in-demand precious metal in many industries, gold is an ideal hedge for financial market risks, especially during periods of macroeconomic and geopolitical uncertainty. There is generally strong global market demand for gold making it one of the most actively traded commodities in the world.

If you want to trade gold, there are several options open to you. You can directly invest in physical gold by purchasing gold bullion from bullion dealers or through gold exchange-traded funds (ETFs) that hold the commodity. Alternatively, you can trade gold through ETFs that track the movements of the commodity or purchase gold CFDs (contracts for difference) which track the asset’s underlying price. The latter is one of the most popular ways of trading gold and it’s quite easy to see why when you know how trading gold CFDs works.

Wheat Markets

Wheat is one of the most important food components and is cultivated globally. This grain has always piqued investors’ interests because it allows them to participate in the agricultural markets by trading wheat CFDs without holding actual tons of it. Wheat commodity trading can take place on several exchanges but there are two main that are listed in wheat futures: Chicago Board of Trade and NYSE Euronext. Wheat futures prices are quoted in USD and cents (USD) per bushel.

The countries producing the biggest quantity of wheat are the European Union with 152,000 thousand metric tons annually, China with 133,600 and India with 106,210. These three countries are amongst the largest producers of wheat worldwide. The countries with the highest consumption of wheat are China with 131,000 thousand tons, India with 96,725 and Australia using the wheat for feeding their masses of livestock.

Coffee Markets

Coffee has become one οf the world’s most profitable commodities. By the 18th century, its cοnsumptiοn and popularity increased significantly in the US during the Civil war. Arabica and Robusta are two different coffee varieties. Arabica is considered a more flavourful bean, with less caffeine and is premium attracting a higher market price. Robusta contains more caffeine and has a bitter taste. Trend followers like to trade Robusta due to its volatility, and traders who prefer more stability choose Arabica.

The price of coffee can be affected by factors such as changing weather conditions, distribution costs, geopolitics, global health issues and the strength of the US dollar. Also, the price of coffee is moved by factors that relate to supply and demand. Major coffee chains in China increased the price of beverages amid rising costs and inflation. Luckin Coffee, Starbucks and Tim Hortons raised prices by between 1 yuan ($0.16) and 3 yuan ($0.47) according to mobile apps and online menus. Starbucks operates more than 5,500 stores in China and after its first-quarter reporting in February 2022, cautioned that rising inflation and staff shortages continued to present a challenging trading environment globally.

Oil Markets

Crude oil is a liquid in the Earth, and it is made of hydrocarbons, organic compounds, and tiny amounts of metal. There are many types of crude produced around the world, and the quality of each is reflected in the value. One of its quality characteristics is the sulfur content, which can be defined as sweet or sour, and density ranges from heavy to light. If crudes are light and sweet, there are more expensive as opposed to energy products such as diesel and gasoline. There is a high demand for these grades since they can be processed with refineries requiring less energy.

Many types of crude oil differ in their consistency and density, depending on how and where it is extracted. There are over 160 types of crude oil traded on the market, but Brent Crude and WTI serve the most as the oil benchmarks in the global markets. The WTI oil is taken from Wells in the United States and sent to Oklahoma by pipeline. It is mostly referred to as US crude, and it has expensive shipping costs when there is demand around the world. The WTI oil is very sweet and light, making it ideal for gasoline refining. WTI is a higher quality crude than Brent, and it is always priced at a premium.

The Organization of the Petroleum Exporting Countries (OPEC) is a cartel of 14 major oil-producing nations seeking to manage the supply of the commodity to control its prices. When there is a meeting on whether to boost or cut production, it can impact current and future prices directly, and oil watchers globally closely follow the announcements. Another important factor affecting the prices is the major crude reports from the US inventory number as higher inventories will mean less demand from the international markets and will pressure the prices lower. Political factors or wars in oil-producing nations are a major issue in the oil markets and natural disasters such as hurricanes that affect major oil infrastructures.

Types of Commodities

Commodities are raw materials or agricultural outputs that appear naturally, and are used in the production of other goods. They are recognised as the building blocks of the global economy and play a significant role in financial markets.

There are two types of commodities

Hard commodities: Refers to natural resources that are mined or extracted

Soft commodities: Agricultural products or livestock

For the purposes of trading, Commodities are further classified into four main categories:

Metals: Includes precious metals such as gold, silver, platinum, palladium and copper

Energy: Crude oil and natural gas are the main energy products that are traded. Heating oil, gasoline and electricity are among others

Agriculture: Agricultural commodities are centred around staple crops and animals. Wheat, rice, corn, soybeans coffee are among the most common crops. The classification of animals includes livestock and meat such as live cattle, pork, and eggs.

Livestock and Meat: Eggs, Pork, Cattle and more

What Are the Most Traded Commodities?

What Are the
Most Traded Commodities?

The most traded Commodities are those which have an established market of buyers and sellers. This translates to high levels of liquidity and lower trading costs - two of the main attractions when trading Commodities CFDs.

Gold: Of the precious metals, gold continues to lead the way. Throughout history, gold has been a valuable commodity. The gold standard was in operation for almost a century and central banks continue to hold gold reserves. It is easily transferable for cash and often used as part of a hedging

Other Metals: Silver, platinum and palladium are among the most traded commodities. As they are considered a safe-haven investment, there is a wide range of Trading Strategies Using Precious Metals.

Crude Oil: The widespread use of oil makes it one of the most in-demand commodities. Petrol and diesel are examples of refined oil which highlights its importance in all forms of transportation. Its value as a source of energy is the reason why oil prices are heavily scrutinised.

Read our comprehensive list of Top Commodities To Trade.

How to Trade Commodities?

How to Trade
Commodities?

There are several ways to trade commodities such as precious metals and oil. As they are a physical product, investors have the option of purchasing precious metals such as gold, silver and palladium. One of the main hurdles of doing so is the cost associated with storing such a valuable product.

This is one of the reasons why commodity futures trading emerged. Through exchange-traded funds (ETFs), you are able to enter into an agreement to buy or sell shares of an underlying ETF at an agreed price prior to a specified date. Many large corporations use futures markets to hedge against market volatility.

FX Future Trade offer CFD trading in commodities where you do not own the underlying asset and enter into a contract which, unlike futures contracts, do not have a specified end date. Trading Gold CFDs allows you to hedge against high risk market conditions using your margin trading account. Similarly, gold is also Forex Trading traded against major currencies in.

Commodities Trading - FAQ

Commodities
Trading - FAQ

What are the major commodity exchanges?

New York Board of Trade (NYBOT)
Chicago Mercantile Exchange (CME)
New York Mercantile Exchange (NYMEX)
Intercontinental Exchange (ICE)
CBOT - Chicago Board of Trade (CBOT)

What margin am I required to deposit?

Commodities, like gold or silver, generally require a lower margin than other products such as for example currencies. This allows trades to open larger positions and gain exposure to market prices.

What is a commodity?

A commodity is a basic material and economic good mainly used as a resource in manufacturing production and services. Commodities are categorised into hard and soft materials. The four main types of commodities are metals, livestock and meat, agricultural, and energy products. In economics, a deliverable commodity is an asset class of futures contracts and options (derivative securities) interchangeable with other fungible goods in the commodity market. Commodities trading volumes on a futures exchange increase in periods of high inflation and general instabilities. Thus, traders and investors who buy and sell contracts often use commodity trading as portfolio diversification and inflation hedge.

How do I start trading commodities?

Account Verification & Funding → Open a Live Account and a Demo Account, determine the amount of funding over the required minimum and activate your trading account with the necessary KYC process.

Education & Practise → Learn, research diligently and familiarise yourself with commodities trading from the robust educational section. Understand how the commodity market works and practise on the Demo Account.

Market Research & Plan your trade → Prior to starting commodity trading on your Live Account, browse throughFX Future Trade analysis, market news and tools, including the economic calendar, to choose a commodity maket asset to trade CFDs on.

Trade Size & Market Direction → After you have carefully selected the financial instrument (commodity) you want to trade on, take an informed decision on the size of your trade (lots, pip value etc). If you expect the commodity price will to rise you go long (Buy). If you expect a decrease of the commodity value you go short (Sell).

Risk Management & Account Protection → There are numerous risk assessment tools, features and trading strategies to help you protect your trades from market volatility and price fluctuations. Use the traders toolbox instruments, including Stop Loss order, Take Profit, Hedging Strategy to reduce the trading risks.

Trade Monitoring & Close Trade → Monitor your trades, track profit and losses and protect your trading account with real-time actions, using any of the available trading platforms and webtrader. Close your trade when you want if you did not reach profit or loss limits.

What do commodity traders do?

Commodity traders are individuals or institutions that buy and sell commodities, including energy products, metals, livestock, and agricultural products in the futures exchange. Commodity traders are driven by different goals, thus commodities and futures contracts are traded directly or indirectly through commodity-related companies and corporations. Traders often use fundamental and technical analysis, indicators, and other financial instruments when trading commodities.

The main three type of traders that buy and sell in the commodity markets are three. Traders representing commodity producers with an aim to sell their assets for portfolio hedging purposes while broker firms execute orders on behalf of private and commercial clients, helping the market liquidity. Other traders want to speculate on the future price of a commodity and profit from the price movements since commodity prices can be affected by both market news and non-market factors.

What are the most traded commodities in the world?

The most traded commodities in the world are the highly volatile WTI Crude Oil and Brent Crude Oil, Natural Gas, Gold and other base metals, Coffee, Sugar, Wheat, Cotto, Corn and Soybeans.

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Trade CFDs on Commodities withFX Future Trade