Over 40 years’ heritage
152,600 clients worldwide

## Find a commodity to trade

Use our market finder tool to find news, videos, analysis and data on the commodities you want to trade.

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## The new way to trade commodities

Our new commodity product enables you to take a cost-effective short-term view on 26 key commodity markets.

The new offering works in the same way as an index CFD or daily funded bet. And just like an index position, you’ll pay a funding charge for holding your commodity position overnight.

As there are no fixed expiries1, we are also able to offer continuous charting on these markets. This means your technical analysis will be available as long as you want it. We have used past data to backdate our charts for the last three to five years, so you can get an accurate historical look.

How do we make our prices?

In the absence of a continuously traded underlying market, we have created an algorithm to derive a price from the forward curve of each commodity. It will automatically calculate and apply day-to-day funding requirements.

Enjoy the best commodity spreads on the market with no insurance costs, including on gold and oil

• ### Increased transparency

As a continuous stream, your profit/loss will be clearer over the position's lifetime and with a daily funding charge for holding a position overnight, there's no need to close on expiry and open a new position

• ### Continuous charting

Take advantage of technical analysis, available as long as you want, and backdated price charts for the last three to five years

## Overnight funding adjustments and costs

See a worked example of the basis adjustment and overnight costs.

### Example

The equation for calculating the overnight adjustment is broken down into two parts; the daily movement along the futures curve (basis), and the IG charge. This is applied to positions open at 10pm UK time.
Overnight adjustment = number of contracts x contract size x (basis + IG charge)

Formula for the IG charge = price x 2.5% / 365

Formula for basis = (P3 – P2) / (T2 – T1)

T1 = expiry date of the previous front future
T2 = expiry date of the front future
P2 = price of front future
P3 = price of next future

The basis equates to the daily movement of our undated price along the futures and may be a credit or a debit. This will either be a positive or negative number depending on the direction of your trade and the slope of the forward curve.

For example imagine you are long one \$10 contract on US Oil. If there was a time difference between T1 and T2 of 31 days, and front month future (P2) was 4700 and the next future (P3) was 4770 then the overnight adjustment would be calculated as follows:

Overnight adjustment    = 1 x \$10 x ((4770 – 4700 / 31) + (4700 x 2.5% / 365))

= \$22.58 + \$3.22

In our example the cost to hold the position overnight is \$3.22, however you will also see a cash neutral futures curve adjustment as well. The \$22.58 basis adjustment will be offset in the running profit or loss on the position.

On the other hand, if you were short US Oil in the above example then you would receive \$22.58 and pay \$3.22, therefore a net credit of \$19.36.

For any position opened before 10pm Friday that is still open after 10pm Friday, the basis adjustment will be made for three days as opposed to one. This three-day adjustment is applied on the Sunday night or Monday morning.

Commodities are the basic building blocks of the global economy. They are natural resources traded on dedicated exchanges around the world.

There are two types of commodity – soft and hard. Soft commodities are typically agricultural like wheat or sugar, whereas hard commodities are metals or energies like silver and gas.

The production and consumption of commodities depends on many factors, including:

• Supply and demand
• The weather
• Economic and political events
• The US dollar (commodities are normally priced in the US currency)

As a result of all these factors, commodity prices can fluctuate significantly.

• ### CFD costs and details

Full commodities CFD details, including dealing hours, spreads and margins.

Watch Sara explain the basics of
commodities trading in less than two minutes

How and where commodities are traded

Commodities are traded on a number of exchanges that specialise in particular markets.

Commodities are also generally traded as futures contracts. These are simply agreements to trade an asset at an agreed price and date in the future. This enables you to trade the contracts themselves without ever having to own the underlying asset.

## Why trade commodities with IG?

• ### Unique range of markets

Trade CFDs on a wide range of popular and niche metals, energies and softs

• ### Sophisticated risk management

Use our risk management tools to manage your positions even in volatile times

• ### Trade commodities on margin

Trade CFDs to gain full exposure with just a small initial deposit, but remember with leverage comes increased risk

Trade on commodities as a CFD with an international account.

CFDs

Spot Gold 0.3
Spot Silver 2.5
Oil - US Crude 3.0
Oil - Brent Crude 3.0
Chicago wheat 0.8
London sugar 0.6
Full CFD details

## Open an account now

It's free to open an account, takes less than five minutes, and there's no obligation to fund or trade.

## You might be interested in...

• ### Platforms and apps

Browser-based desktop trading and native apps for all devices.

• ### Market analysis

The latest analysis and insights from our in-house experts.

• ### 24-hour support

We're here 24 hours a day Mon-Fri, and 9am to 5pm Sat-Sun.

Please note: Commodities are available to trade on an international account only

*South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.