Commodities Spread Betting
Indicative Commodities prices from Finspreads:
Click on the tabs to see the various commodities, forex and stock market index prices.
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Commodities Price Comparison |
A price comparison table looking at the 'spread size' and minimum stakes for the most popular commodities markets.
| Gold Daily - Spread Size |
4 |
5 |
5 |
4 |
5 |
4 |
4 |
7 |
| Gold Daily - Min Stake |
£1 |
$0.60 |
£1 |
£0.1 |
£1 |
£1 |
£1 |
£1 |
| Gold Futures - Spread Size |
6 |
8 |
6 |
6 |
7 |
6 |
6 |
14 |
| Gold Futures - Min Stake |
£1 |
$0.60 |
£1 |
£0.1 |
£1 |
£1 |
£1 |
£1 |
| Brent Crude Oil Futures - Spread Size |
4 |
6 |
6 |
6 |
5 |
4 |
4 |
12 |
| Brent Crude Oil Futures - Min Stake |
£1 |
$2 |
£1 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| US Crude Oil Futures - Spread Size |
4 |
6 |
6 |
6 |
5 |
4 |
4 |
12 |
| US Crude Oil Futures - Min Stake |
£1 |
$2 |
£1 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
Comparison Notes.
This table is not meant to be inclusive, commodities spread betting may be available through other brokers.
Commodities Spread Betting Analysis & News |
| 17-May-13 |
[4:14pm] The scourging of the gold bulls continues unabated, with the metal falling to a one-month low.
Central banks sitting on large piles of the stuff looked pretty clever when the price was surging.
Now that it's falling I fear some might begin to reconsider their position, which could easily give rise to a new wave of selling.
Update by Chris Beauchamp, Market Analyst, 
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| 17-May-13 |
[3:34pm] The sell-off in gold has continued today with the bears taking control again.
The metal is now trading 18% lower than at the start of the year and appears to be giving back all of the bounce we have seen since reaching a two year low in the middle of April.
With equities continuing to rally as the economy show signs of recovery there appears to be very little for gold traders to get excited about as we finish the week on a low note.
Soybean has had its biggest weekly rise since January as buying from its biggest importer, China, pushes the prices higher.
This buying has been coupled with news that the US has overplanted corn, leaving a much smaller acreage for Soybean crops.
Update by Toby Morris, Senior Sales Trader, 
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| 17-May-13 |
[7:34am] After the close of Wall Street, WTI Crude Future (JUN 13) was up $0.7 to $94.98.
The contract was above its 20DMA (@ $93.3) and above its 50DMA (@ $93.46).
Gold was down $6.1 to $1386.9.
The precious metal was below its 20DMA (@ $1445) and below its 50DMA (@ $1512).
Copper Future (JUL 13) on Comex was up 2c to 328.5c/lb.
The contract was above its 20DMA (@ 323.65c) and below its 50DMA (@ 335.87c).
In Europe, the London Metal Exchange reported its copper inventories decreased 3125 tons to 624400 tons.
Update by 
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| 17-May-13 |
[6:23am] In commodities spread betting, crude oil bucked the recent trend by spending a day in the black.
It was a volatile session during which the market spent early trading at a loss before finishing strongly and closing at $95.13.
News that billionaire George Soros had reduced his gold holdings in exchange-traded products piled on the misery for gold investors yesterday.
The precious metal will not have been helped by the strengthening dollar and we are currently trading at the $1,380 level for the June futures contract.
Update by Jonathan Sudaria, Market Dealer, 
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| 17-May-13 |
[5:00am] Crude Oil Update
In Asia, crude oil for June delivery is trading 0.2% or $0.16 lower at $95.00 per barrel.
Yesterday, crude oil for June rose 0.9% or $0.86 to $95.16 per barrel, as a rise in US jobless claims and a benign inflation rate bolster prospects that the Fed would not wind down its stimulus measures too soon.
Oil prices also rose, as the dollar weakened against major peers, improving the demand for commodities as an alternative investment.
However, earlier, crude oil prices traded in the red, after the Philadelphia Federal Reserve stated its business conditions index sank to -5.2 from 1.3 in April, increasing worries about the future oil demand.
Metal Trading UpdateGold for immediate delivery is trading 0.4% lower, at $1,381.16 per ounce. Gold for June delivery shed 0.7% or $9.30 to close at $1,386.90 per ounce yesterday, as investors remained bearish on gold.
This came even after data showed that US consumer price inflation dropped more-than-expected in April and first time claims for US unemployment benefits rose more-than-anticipated during the week ended 11 May 2013.
The precious metal also came under pressure on news that Soros Fund Management LLC slashed its holding in the SPDR Gold Trust by 12% as of 31 March from the previous quarter.
Meanwhile, a World Gold Council report revealed that demand dropped 13% in the first quarter from a year earlier.
Yesterday, copper 3-month futures declined 0.3% or $19.5, to end at $7,125.50/MT. Aluminium 3-month futures ended 0.6% or $10.0 higher at $1,785.00/MT.
Update by Ishaq Siddiqi, Market Analyst, 
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| 17-May-13 |
[5:00am] Commodities Price Update:
 WTI Crude is trading -$0.16 (-0.17%) lower at $95.00 ($/barrel)
Brent Crude is trading -$0.13 (-0.13%) lower at $103.54 ($/barrel)
Gold is trading -$5.75 (-0.41%) lower at $1381.15 ($/oz)
 Copper is trading $0.01 (0.21%) higher at $3.29 ($/lb.)
Wheat is trading -1.25¢ (-0.18%) lower at 687.62¢ (US cents/bushel)
Cotton No.2 is trading -0.20¢ (-0.24%) lower at 85.94¢ (US cents/lb.)
In the last session:
In the last session, Coffee C closed -0.30¢ (-0.21%) lower at 140.25¢ (US cents/lb.)
In the last session, Sugar No.11 closed -0.12¢ (-0.68%) lower at 16.82¢ (US cents/lb.)
Update by
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| 17-May-13 |
[4:22am] Gold closed lower on Thursday and the mid-range close sets the stage for a steady opening when Friday's session begins trading. Stochastics and the RSI have turned bearish signalling that additional weakness is possible near-term. If it extends the decline off last October's high, the 62% retracement level of the 2008-2011 rally crossing is the next downside target. Closes above the 20 day moving average crossing would confirm that a short-term low has been posted.
Update by 
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| 17-May-13 |
[4:22am] US Crude oil closed higher on Thursday and the mid-range close sets the stage for a steady opening when Friday's session begins. Stochastics and the RSI are turning bearish signalling that sideways-to-lower prices are possible near-term. If it extends this month's decline, November's low crossing is the next downside target. Closes above the 20 day moving average crossing are needed to confirm that a short-term low has been posted.
Update by
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| 16-May-13 |
[5:02pm] Gold continues to tumble southwards, falling by as much as 1.5% before staging a small recovery on the marginally weaker dollar in early afternoon trade.
Prices have fallen back by 18% this year and the confidence of some investors has been dented, which is exacerbating the overall decline.
News that consumer prices continue to fall, after US CPI fell 0.4% in April from March, is also not an encouraging signal to gold investors.
Update by David Madden, Market Analyst,
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This content is for information purposes only and is not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.
Unless stated otherwise, the above time is based on when we receive the data (London time). All reasonable efforts have been made to present accurate information. The above is not meant to form an exhaustive guide. Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary
For the commodities market commentary archives see Commodities Trading Archive.
Advert:
Commodities Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Commodities with
Financial Spreads.
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Where Can I Spread Bet on Commodities? |
Investors can spread bet on a wide array of commodities like crude oil, gold, silver, wheat, sugar and coffee with:
Live Commodities Spread Betting Prices and Charts |
You can use the search option on the chart below to access live charts for:
- Metals: gold, copper, palladium, platinum & silver
- Energies: US oil, heating oil & natural gas
- Softs: corn, cotton & soybeans
Note that the chart and prices for the 'oil' market are for US crude oil rather than Brent crude oil.
The above is a CFD chart from Plus 500 and normally tracks the front-month futures market.
If you want live commodities spread betting charts and prices, you will probably need a spread betting account (accounts are subject to status, suitability and credit checks).
Should your application be approved you will be able to log in and check the live charts/prices. Access to charts and prices is usually free. So what's the catch? You're likely to get the odd phone call or dreary newsletter from your chosen spread trading company.
If you want to trade then you should note that spread trading and CFD trading do involve a significant level of risk to your funds and losses could exceed your initial deposit.
Professional Level Commodities Charts |
Whilst the specific charting packages differ across the various firms, in order to help your commodities analysis, they usually have valuable features such as:
- A host of different time intervals - 1 minute, 5 minutes, 1 hour, 1 day, 1 week and so on
- Different displays - line charts and candlestick charts
- Tools for adding features - Fibonacci retracements and trendlines
- Chart overlays and technical indicators - Exponential Moving Average, Bollinger Bands, Momentum, RSI, TSI, Chaikin's Volatility and so on
Charts from Financial Spreads also include more advanced features such as:
- Back Testing functions
- Customised email alerts that trigger when the markets hit a specific level
Example commodities chart from FinancialSpreads
The spread betting brokers in the list below provide clients with access to real time charts and prices:
Where Can I Spread Bet on Commodities for Free? |
Investing always comes with a degree of risk. Having said that, if you want to try a free Test Account, that allows you to practice your spread betting, see Free Demo Account below.
Furthermore, financial spread betting in the UK is tax free*, i.e. there is no stamp duty, income tax or capital gains tax.
If you are looking for a free commodities trading platform, keep in mind that you can spread bet on commodities futures without having to pay any commissions or brokers' fees through companies such as:
If you are looking for a free Practice Account where you are able to try out financial spread betting, and trading markets like coffee, gold and crude oil, then you can always have a closer look at:
The above spread trading firms currently offer a risk free Test Account that lets investors practice their trading, analyse professional charts and try out new ideas.
Individual Commodities Spread Betting Guides |
Below we have listed guides to the main commodities spread betting markets.
The first table shows the more popular markets and each guide has real-time prices and charts as well as regular market updates and analysis.
All of our commodity guides have worked trading examples and answer popular questions such as:
- Where can I spread bet?
- Where can I get live prices / charts?
- Where can I trade commission free?
- Where can I practice trading?
- Etc.
The following guides cover the less popular commodities. Investors should take extra care when speculating on these markets. Spread betting is always a high risk form of trading however the following:
- Are less popular and therefore the ‘spreads’ tend to be wider i.e. the underlying market has to move further, than a highly traded market, before you can close out your trade for a profit
- Can be more volatile and more likely to ‘slip’ or ‘gap’ than popular, and liquid, markets like gold and crude oil.
How to Spread Bet on Commodities - Gold |
Most commodities markets are 'futures' markets. However, with spread betting, the most popular gold market is normally the 'daily' gold market. See below for a worked commodities futures example.
Looking at CapitalSpreads, we can see they are currently pricing the 'Gold Rolling Daily' market at $1,761.5 - $1,761.9.
Therefore you can spread bet on gold:
 Moving above $1,761.9, or
 Moving below $1,761.5
When spread betting on gold you trade in £x per $0.1. As a result, if you decided to risk £3 per $0.1 and gold moves $3.0 then that would alter your profit/loss by £90. £3 per $0.1 x $3.0 = £90.
Rolling Daily Commodities Markets
Again, note that this is a Rolling Daily Market. So in contrast with commodities futures markets, there is no expiry date. If your trade is still open at the end of the day, it will roll over into the next trading day.
If your position does roll over and you are spread betting on the market to:
Move up - then you'll normally be charged a small financing fee, or
Move down - then you will often receive a small credit to your account
For a fully worked example please see Rolling Daily Spread Betting.
Gold Rolling Daily - Commodity Spread Betting Example |
If we take the spread of $1,761.5 - $1,761.9 and make the assumptions that:
- You have done your analysis of the metals market, and
- Your analysis leads you to believe that gold will move above $1,761.9
Then you could decide to go long of the market at $1,761.9 and invest £2 per $0.1.
So, you gain £2 for every $0.1 that gold moves higher than $1,761.9. However, this trade also means that you will make a loss of £2 for every $0.1 that the gold market drops below $1,761.9.
Thinking of this in a slightly different way, should you 'Buy' a spread bet then your profit/loss is found by taking the difference between the closing price of the market and the price you bought the spread at. You then multiply that difference in price by the stake.
Should the market rise to $1,768.5 - $1,768.9, you might decide to close your spread bet and take your profit.
To close your position, you would sell at $1,768.5:
Profit = (Closing Level - Opening Level) x stake
Profit = ($1,768.5 - $1,761.9) x £2 per $0.1
Profit = $6.6 x £2 per $0.1
Profit = £132 profit
Trading commodities won't always go to plan. In this example, you had bet that the gold market would rise. Of course, the precious metal might fall.
If gold fell, you could choose to limit your losses by closing your spread bet.
If we continue the example, but with the commodity dropping to $1,756.1 - $1,756.5, then you could choose to close your trade by selling at $1,756.1. This would give you a loss of:
Loss = (Closing Level - Opening Level) x stake
Loss = ($1,756.1 - $1,761.9) x £2 per $0.1
Loss = -$5.8 x £2 per $0.1
Loss = -£116 loss
Gold Rolling Daily market correct as of 20-Sep-12.
How to Spread Bet on Commodities Futures - Crude Oil |
If we log into Inter Trader, we can see they are offering the US Crude Oil November Futures market at $91.50 - $91.54.
This means an investor could spread bet on US Crude Oil:
Finishing higher than $91.54, or
Finishing lower than $91.50
On the settlement date for this 'November' market, 17-Oct-12.
If you spread bet on US Crude Oil you trade in £x per $0.01. As a result, should you choose to invest £5 per $0.01 and US Crude Oil moves $0.34 then there would be a difference to your P&L of £170. £5 per $0.01 x $0.34 = £170.
US Crude Oil Futures Example |
If we think about the above spread of $91.50 - $91.54 and assume:
- You have done your analysis, and
- You feel that the US Crude Oil market will finish higher than $91.54 by 17-Oct-12
Then you could opt to buy a spread bet at $91.54 and trade, for the sake of argument, £4 per $0.01.
Therefore, you make a profit of £4 for every $0.01 that US Crude Oil pushes above $91.54. Having said that, such a trade also means that you will lose £4 for every $0.01 that the US Crude Oil market falls below $91.54.
Looked at another way, if you buy a spread bet then your profit/loss is calculated by taking the difference between the closing price of the market and the price you bought the market at. You then multiply that price difference by the stake.
As a result, if, on the expiry date, US Crude Oil finished at $91.77, then:
P&L = (Closing Value - Opening Value) x stake
P&L = ($91.77 - $91.54) x £4 per $0.01
P&L = $0.23 x £4 per $0.01
P&L = £92 profit
Speculating on commodity futures, by spread betting or otherwise, does not always result in a profit. With this example, you wanted the oil futures market to increase. Naturally, the futures market might decrease.
If US Crude Oil had fallen and closed at $91.27, you would end up losing this spread bet.
P&L = (Closing Value - Opening Value) x stake
P&L = ($91.27 - $91.54) x £4 per $0.01
P&L = -$0.27 x £4 per $0.01
P&L = -£108 loss
Note - US Crude Oil November Futures commodities market accurate as of 20-Sep-12.
Where Can I Find a Commodities Trading Platform/Software? |
A few spread betting companies have trading platforms/software that you need to download and install on your computer. Most companies however provide web-based platforms where all you need is internet access.
The brokers listed above in our prices and charts section all have web-based platforms where you can spread bet on commodities markets.
Advert:
Commodities Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Commodities with
Financial Spreads.
|
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'Commodities Spread Betting' by DB, updated 17-May-13
For related pages also see:
Commodities Spread Betting, updated 17-May-13
Commodities spread betting guide with live prices and charts. Plus a daily commodities market review, commodities spread betting comparison, where to trade commodities commission-free and tax-free* as well as...read article: Commodities Spread Betting.
Gold Spread Betting, updated 17-May-13
Gold spread betting guide with live prices and charts. Plus a daily gold market review, gold spread betting comparison, where to trade gold commission-free and tax-free* as well as...read article: Gold Spread Betting.
Crude Oil Spread Betting, updated 17-May-13
Crude oil spread betting guide with live prices and charts. Plus a daily crude oil market review, spread betting comparison for Brent crude oil and US crude oil, where to trade oil commission-free and tax-free* as well as...read article: Crude Oil Spread Betting.
Commodities Trading, updated 16-May-13
Compare commodities spreads. Compare Crude Oil and Gold spreads. The latest commodities trading news, where to find free Commodities Trading charts and...read article: Commodities Trading.
Gold Trading, updated 16-May-13
Compare Gold spreads, find free Gold Trading plus your Gold trading questions answered, tips on getting free Gold charts, real time prices and...read article: Gold Trading.
Crude Oil Trading, updated 16-May-13
Find free Crude Oil Trading plus your Crude Oil trading questions answered, tips on getting free Crude Oil charts, real time prices and...read article: Crude Oil Trading.
Silver Spread Betting, updated 17-May-13
Guide to spread betting on silver futures: live silver futures charts and prices, where to trade silver futures commission-free and tax-free*, how to spread bet on silver as well as...read article: Silver Spread Betting.
Copper Spread Betting, updated 17-May-13
Guide to spread betting on copper futures: live copper futures charts and prices, where to trade copper futures commission-free and tax-free*, how to spread bet on copper as well as...read article: Copper Spread Betting.
Platinum Spread Betting, updated 08-May-13
Guide to spread betting on platinum futures: live platinum futures charts and prices, where to trade platinum futures commission-free and tax-free*, how to spread bet on platinum as well as...read article: Platinum Spread Betting.
Commodities Trading News, updated 17-May-13
An index of commodities trading articles covering: commodities futures news, commodity market analysis & spread betting on commodities futures. Plus commodities trading strategies, commodities charts, price comparisons and...read article: Commodities Trading News.
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