Commodities trading

In addition to our vast range of commodity futures, we now offer commodities with no expiry points.

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.

Lower spreads

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

How do we make our prices?

To price these markets we use two futures contracts on the underlying commodity. For each market we look at the contracts that have sufficient liquidity, then use the two with the nearest expiry dates.

The one that has the closest expiry date is called the front month contract, and is labelled ‘A’ in our diagram. The one with the second-nearest expiry date is called the back month contract and is labelled ‘B’.

As soon as the previous contract expires, the price we offer is equal to the price of ‘A’. When ‘A’ expires, ‘B’ becomes the front month contract, and our price is equal to the price of ‘B’.

In between these two expiry points, our price gradually moves from the price of ‘A’ towards the price of ‘B’. Depending on the commodity, the price of ‘B’ can be higher or lower than the price of ‘A’.

Overnight funding charges for these markets reflect one day’s movement along the forward curve from the price of ‘A’ towards the price of ‘B’.

Why trade commodities with IG?

Unique range of markets

Spread bet or 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

Spread bet or trade CFDs to gain full exposure with just a small initial deposit, but remember with leverage comes increased risk

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