A Commodity is a basic good that is interchangeable with other commodities. Commodities are often inputs used in production for other goods and services. Another definition for a commodity is any good exchanged for commerce. This includes any product that is traded on a commodity exchange like the CBOE (Chicago board Options exchange). The history of commodities trading goes back thousands of years and commodities have shaped history and continue to do so by having a big impact on the course of nations. Both shortages and oversupply of commodities can be devastating to global economies. Below, you can find, short description of the 3 most traded world’s commodities.
- Crude oil: Oil is affected by the world’s economic and political systems. Crude oil offers high liquidity and therefore creates an excellent trading opportunity. Crude oil just like many other assets is affected by supply and demand.
- Brent: known as a sweet light crude oil which is sourced from the North Sea. Also known as Brent petroleum it serves a major benchmark price for purchases of oil worldwide
- Natural Gas: Is one of the cleanest and safest energy supplies available in the world. Natural gas is in greatest demand during the winter season to meet commercial and domestic heating needs. It is one of the world’s most appealing globally traded commodities.
At IGM Forex LTD, we give the opportunity to our clients to trade CFDs on commodities, that is a more convenient way to access the commodities market, than the actual purchasing of the underlaying asset. CFD stands for Contracts for Difference, that are a form of a trading that, enables the client, to speculate on the rising or the falling of the prices while attempting to net a potential profit, on the global fast-moving , in this case products market, such as commodities. Since there is no actual ownership of the asset, the product is not exchange traded and it is said therefore that it is traded over-the counter (OTC). We offer the below stated CFDs on commodities.
|Instrument||Leverage||Stopout Level||Minimum Trade Size||Contract Size||Tick Value (1 lot)||Decimal Places||Trading Hours (GMT+2)|
|CRUDEOIL||1:10||50.0%||0.10||1000 barrels||10 USD||0.01||01:00-24:00|
|BRENTOIL||1:10||50.0%||0.10||1000 barrels||10 USD||0.01||03:00-23:00|
|NATURALGAS||1:10||50.0%||0.10||10,000 mmBtu||10 USD||0.001||01:00-24:00|