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Commodities
Facts
Over 22 Commodities to trade
Energy, Agriculture and Metals
Spot and Futures CFDs
Leverage up to 1:500
Spreads as low as 0.0 pips

COF offers a flexible and easy way to gain exposure to some of the world's most popular commodities including energies and metals all from within your COF trading platform.

Commodity markets are attractive to speculators as they are susceptible to dramatic changes in supply and demand.

Energies

COF allows trading of spot energy contracts including Crude Oil, Brent, and Natural Gas from your COF platforms against the US Dollar.

 

Trading energy contracts as a spot instrument has many advantages for investors who are only interested in price speculation. 

Precious Metals

COF allows trading the spot price for metals including Gold or Silver against the US Dollar or Euro and the metals Platinum or Palladium against the US Dollar as a currency pair on 1:500 leverage.

 

Soft Commodities

In addition to energy and metal contracts, at COF we offer a range of soft commodity products to trade, including corn, soybeans, sugar, cocoa, coffee, and wheat as CFDs – all with low spreads and leverage up to 1:100.

 

How does
Commodities trading work?

 

Commodities cover energy, agriculture and metals products. These products are traded in futures markets and derive their value from demand and supply characteristics.

Supply characteristics include the weather in the case of agriculture and costs of extraction in the case of mining and energies.

Demand for commodities tends to be characterised by broader conditions such as economic cycles and population growth. Commodities can be traded as stand alone products or in pairs.

Metals and energies are traded against major currencies whereas agriculture futures contracts are traded as stand-alone contracts.

Commodity trading example

Buying: Wheat
The gross profit on your trade is calculated as follows:
Opening Price
$435.25 * 100 contracts * 4 = USD $174,100
Closing Price
$460 * 100 contracts * 4 = USD $184,000
Gross Profit on Trade
USD $184,000 - $174,100 = $9,900
Opening the Position
Wheat_N7 is currently trading at 434.00/435.25 and you are expecting Australia's East Coast crops to be affected by adverse weather patterns over the coming year which will result in lower than average crop yields.
You buy 100 contracts of Wheat (4 bushels per contract) at 435.25 which equals USD $174,100 (435.25 * 100 * 4).(4 bushels per contract) at 435.25 which equals USD $174,100 (435.25 * 100 * 4).
Closing the Position
Your research surrounding weather conditions turns out to be correct. Lower crop yields this year have caused Wheat prices to increase to 460.00/462.15. You exit your position by selling your contracts at 460.

Spreads

Commodities
Product
All Accounts
SYMBOL
DESCRIPTION
MIN
AVG
BRENT
Brent Crude Oil Futures
0.020
0.028
Cocoa
Cocoa futures
3.000
4.608
Coffee
Coffee Futures
0.300
0.300
Corn
Corn Futures
0.680
0.680
Cotton
Cotton Futures
0.150
0.150
OJ
Orange Juice Futures
1.120
1.120
Soybean
Soybean Futures
1.350
1.350
Sugar
Sugar Futures
0.030
0.033
Wheat
Wheat Futures
0.750
0.750
WTI
West Texas Intermediate - Crude Oil Futures
0.020
0.027
XBRUSD
Brent Crude Oil Spot vs United States Dollar
0.030
0.034
XNGUSD
Natural Gas Spot vs United States Dollar
0.002
0.004
XTIUSD
WTI Crude Oil Spot vs United States Dollar
0.030
0.034


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