What are IG's commodities spread bet product details?

Where you see a number or letter in brackets in the tables, the corresponding note can be found below.

1. Spreads are subject to variation, especially in volatile market conditions. If the underlying market spread increases significantly, our spread may increase.

2. Commodity funding is based on the market cost of carry including an admin fee of 2.5% per annum.

3. For Spot Gold and Spot Silver the overnight funding adjustment is based on the tom-next spread including an admin fee of 0.8% per annum. As spot gold and spot silver are DFBs they have an expiry far out in the future.

4. Please note that tiered margins apply; this means that higher deposits may be required for large positions. See our margins page for further details. You can find the tiered margins for each market from the Get Info section in our dealing platform.

5. Live Cattle, Feeder Cattle and Lean Hogs open at 15.05 (London time) on the Monday of a normal business week, and close on Fridays at 19.55 (London time).

6. The market will close early on a Friday at 19.55 (London time). Note that there is a break each day between 22.00 and 23.00 (London time).

7. Iron ore is quoted during the following times: 09:00 – 11:30, 13:30 – 15:00 and 21:00 – 02:30 China Standard Time (GMT +8).

8. For guaranteed stop bets a guaranteed stop premium is charged if your guaranteed stop is triggered. The potential premium is displayed on the deal ticket, and can form part of your margin when you attach the stop. Please note that premiums are subject to change, especially going into weekends and during volatile market conditions.

9. US Dollar Basket based on the closing price of the US Dollar Index futures contract on NYBOT on the Friday prior to the third Wednesday of the contract month.

10. We price our US Dollar Basket - Undated contracts with the method used to derive our undated commodity prices. This means that there is a difference between our undated price and the underlying index price on these markets. Funding is also calculated in line with the undated commodity method. Please see our overnight funding page for more details.

Where you see a number or letter in brackets in the tables, the corresponding note can be found below.

1. For all commodity quarterly bets, unless expressly agreed otherwise with IG, positions will be rolled over to a later date by default. Where a client has agreed with IG to expire a position, it will do so basis plus or minus half our spread as follows:

a) Brent Crude Oil based on the ICE Brent settlement price on our last dealing day.
b) Cocoa (London), Coffee Robusta, White Sugar No.5 and London Wheat based on the settlement price of the relevant contract on LIFFE on our last dealing day.
c) Cocoa (US), Coffee Arabica, Orange Juice, Sugar No.11, Cotton, and US Dollar Basket based on the settlement price of the relevant futures contract on NYBOT on our last dealing day.
d) Gold, Silver and High Grade Copper futures based on the settlement price of the relevant futures contract on COMEX on our last dealing day.
e) US Light Crude Oil, Heating Oil, Natural Gas, No Lead Gasoline, Platinum and Palladium futures based on the settlement price of the relevant futures contract on NYMEX our last dealing day.
f) Corn, Oats, Soyabeans, Soyabean Meal, Soyabean Oil, Wheat and Rough Rice based on the settlement price of the relevant futures contract on CBOT on our last dealing day.
g) Gas Oil and Carbon Emissions based on the settlement price of the relevant futures contract on ICE on our last dealing day.
h) Live and Feeder Cattle, Lean Hogs, and Lumber based on the settlement price of the relevant futures contract on CME on our last dealing day.
i) Gold futures expire on the fourth business day prior to the first day of the contract month.
j) Milling Wheat and Rapeseed based on the settlement price of the relevant futures contract on Euronext on our last dealing day.

2.

a) Spread bets on commodity futures are quoted with reference to the equivalent expiry contract on the underlying futures market. We do not apply any weighting or biases to our pricing sources.

b) Spreads are subject to variation, especially in volatile market conditions. Our dealing spreads may change to reflect the available liquidity during different times of day. Our normal spread is shown in the table.

c) Dealing spreads may be offered as a fixed or variable amount. If variable spreads are in use, then the spread shown in this table is the amount of IG spread added to the underlying futures market spread. Any variable dealing spreads are marked with an asterisk (*).

3. We generally only offer front month for most futures markets, and front 2 months for US Light Crude Oil and Brent Crude Oil futures.

4. The last dealing day shown here will not always coincide with the last dealing day of any relevant analogous exchange-traded futures contract. This is because contracts can become illiquid as they approach expiry and market spreads can widen considerably.

5. Rollovers:

a) For Spot Gold and Spot Silver the overnight funding adjustment is based on the tom-next spread including an admin fee of 0.8% per annum. As spot gold and spot silver are DFBs they have an expiry far out in the future.

b) For Aluminium, Copper, Lead, Nickel and Zinc daily funded bets the overnight funding adjustment is based on the market cost of carry including an admin fee of 2.5% per annum.

c) Futures: when Commodity Futures are rolled, normal bets are closed at the middle of our price, plus or minus half our normal spread, and are reopened at the middle of our price, plus or minus half our spread. Guaranteed stop bets on Commodity Futures are closed at the middle of our price, plus or minus half the normal IG Index spread, and are reopened at the middle of our price, plus or minus half IG Index spread, and plus or minus the guaranteed stop premium. (N.B. For most commodity future rolls, the middle of our closing and re-opening prices will be based upon the prior day’s market settlement price for the relevant contracts).

d) Stops and limits: If you have a stop or a limit order on a spot position when it is rolled over, we will, unless instructed otherwise, place the stop or limit on the new bet at the same level as the stop or limit on the expiring bet. If the new bet is based on a different contract month we will adjust the stop or limit for fair value. If you have Stops or Limits on a Futures bet when it is rolled over, we will, unless otherwise instructed, place the stop or limit on the new bet at the same level, but adjusted for fair value. For example, if the price of the new contract is 20 points higher than the expiring contract, your stop or limit would be rolled forward at your existing level plus 20 points. This applies to both guaranteed and non-guaranteed stops and limits.

6. Please note that tiered margins apply; this means that higher deposits may be required for large positions. See our margins page for further details. You can find the tiered margins for each market from the Get Info section in our dealing platform.

7. The market will close early on a Friday at 19.55 (London time). Note that there is a break each day between 16.00 and 17.00 (London time).

8. For guaranteed stop bets a guaranteed stop premium is charged if your guaranteed stop is triggered. The potential premium is displayed on the deal ticket, and can form part of your margin when you attach the stop. Please note that premiums are subject to change, especially going into weekends and during volatile market conditions.

9. Please note that tiered margining applies; this means that higher margins may be required for large positions. Margin requirements represent a percentage of the overall position value, and can vary depending on which account type you hold. You can find the applicable tiered margins from the Get Info dropdown section within each market in the trading platform. See our tiered margining page for more details.