How to Spread Bet on Commodities
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How to Spread Bet on Commodities - an introduction to commodities trading betting. If you are looking for commodity trading on oil and wheat as well as metals and many other markets, you're on the right website.
The futures market started with agricultural commodities. Farmers and producers would try to hedge their incomes against future events. Commodities markets are influenced by rumours of poor weather, low yield harvests and global demand fluctuations. Therefore commodity trading offers some of the most volatile spread bets.
Q) Where can I Spread Bet on Commodities?
Q) Where can I Trade for Free on Commodities?
Q) How to Spread Bet on Commodities
Q) Where can I find Free Live Prices on Commodities?
Q) Where can I find Free Commodities Charts?
Q) Where can I find free Commodities Trading News?
Q) Where can I find Narrow Commodities Spreads?
Commodities - Narrow Spreads Comparison
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| Gold Daily - Spread Size |
4 |
5 |
4 |
4 |
5 |
4 |
5 |
4 |
| Gold Daily - Min Stake |
£1 |
£1 |
£1 |
£0.1 |
£1 |
£1 |
£1 |
£1 |
| Gold Future - Spread Size |
6 |
6 |
6 |
6 |
7 |
6 |
13 |
6 |
| Gold Future - Min Stake |
£1 |
£1 |
£1 |
£0.1 |
£1 |
£1 |
£1 |
£1 |
| Brent Crude Daily - Spread Size |
5† |
5 |
5† |
4 |
5† |
5† |
5 |
5† |
| Brent Crude Daily - Min Stake |
£1 |
£1 |
£1 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| Brent Crude Future - Spread Size |
5 |
6 |
5 |
6 |
5 |
5 |
5 |
5 |
| Brent Crude Future - Min Stake |
£1 |
£1 |
£1 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| Nymex US Crude Daily - Spread Size |
5† |
5 |
5† |
4 |
5† |
5† |
6 |
5† |
| Nymex US Crude Daily - Min Stake |
£1 |
£1 |
£1 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| Nymex US Crude Future - Spread Size |
5 |
6 |
5 |
6 |
5 |
5 |
6 |
5 |
| Nymex US Crude Future - Min Stake |
£1 |
£1 |
£1 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
Comparison Notes
How to Spread Bet on Commodities: Crude Oil
The price of Brent Crude is stable but you think it will have another price correction from the current price of around $60.30 per barrel. You check a spread betting company's website and see the Dec Quote is 60.32 to 60.44, and is traded per 0.01 point.
You decide to sell at £3 per point (0.01) at 60.32. Let's say your forecast is good and the price of oil falls. Your position closes at expiry at 58.52.
Your profit / loss is calculated by calculating the difference between the closing level (58.52) and the opening price (60.32) and multiplying it buy your stake.
Profit on day = (60.32 - 58.52) / 0.01 x £3 per point stake
= 180 points x £3 per point = £540 profit
However had Oil demand increased and reignited the Oil bull market the price could have closed at 62.02 you would have lost.
Loss = (60.32 - 62.02) / 0.01 x £3 per point stake
= -170 points x £3 per point = £510 loss
Brent Crude Oil spread betting market as of 6-Nov-08.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
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How to Spread Bet on Commodities: Orange Juice
You think Orange Juice demand has peaked compared to the ever increasing supply and therefore that its price will decrease. You check the online price for Orange Juice July (OJ). The expiry being 30 June. There is a spreads quote of 118.00 - 118.40 cents per pound.
You like the quote and decide to sell for £5 per tick at 118.00 (for this market 1 tick = 0.05).
As it happens there's a bit of a bear market on OJ and the price is settled at 115.80.
As normal, your profit / loss is calculated by calculating the difference between the closing level (115.80) and the opening price (118.00) and multiplying it buy your stake.
Profit = (118.00 - 115.80) / 0.05 x £5 per tick stake
= 44 x £5 = £220 profit
However, if some of the crops had given poor yields and there was a Bull market on the price of OJ it could have settled at 120.60. Therefore you would have lost.
Your Loss = (118.00 - 120.60) / 0.05 x £5 per tick stake
= -52 points x £5 = £260 loss
Orange Juice spread betting market as of November 2006.
Commodities Betting Markets
Each company will have their own specific online markets however many of the companies will offer most of the following:
Metals
Energies
Softs
- Butter
- Coffee 'C', also see Spread Betting on Coffee.
- Corn
- Cotton no. 2
- Feeder Cattle
- Orange Juice
- Lean Hogs
- Live Cattle
- Lumber
- Milk
- Cocoa
- Oats
- Pork Bellies
- Soyabean Meal
- Soyabean Oil
- Soyabeans
- Sugar no. 11
- Wheat
The Spread Betting Companies?
If you're looking for places to spread bet - have a look at the following spread betting companies.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
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How to Spread Bet
How to spread bet on Bonds and Interest Rates
How to spread bet on Commodities
How to spread bet on Forex
How to spread bet on Shares
How to spread bet on Stock Market Indices
Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It 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.
'How to Spread Bet on Commodities' by JW, updated 22-Dec-11
For related pages also see:
Commodities Spread Betting, updated 08-Feb-12
A daily look at the Commodities spread betting markets plus a Commodities spread betting comparison, where to spread bet on Commodities markets, find free Commodities charts and...read article: Commodities Spread Betting.
Gold Spread Betting, updated 08-Feb-12
A daily look at the Gold spread betting market plus a Gold spread betting comparison, where to spread bet on Gold, find free Gold charts and...read article: Gold Spread Betting.
Crude Oil Spread Betting, updated 08-Feb-12
A daily look at the Crude Oil spread betting markets plus a spread betting comparison for Brent Crude Oil and US Oil, where to spread bet on Crude Oil, find free Oil charts and...read article: Crude Oil Spread Betting.
Gold Spread Trading, updated 08-Feb-12
Gold Spread Trading - A look at where you can open a Gold spread trading account, where to get live Gold spread trading charts, risk management tips, spread trading examples and...read article: Gold Spread Trading.
Crude Oil Spread Trading, updated 08-Feb-12
Crude Oil Spread Trading - A look at where you can open a Crude Oil spread trading account, where to get live Crude Oil spread trading charts, risk management tips, spread trading examples and...read article: Crude Oil Spread Trading.
Commodities Trading, updated 20-Jan-12
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Spread Trading Commodities, updated 08-Feb-12
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Silver Spread Betting, updated 31-Jan-12
Silver trading information, where to find free Silver charts and prices, how to spread bet on Commodities, including the Silver...read article: Silver Spread Betting.
Copper Spread Betting, updated 31-Jan-12
Copper trading information, where to find free Copper charts and prices, how to spread bet on Commodities, including the Copper...read article: Copper Spread Betting.
Platinum Spread Betting, updated 31-Jan-12
Platinum trading information, where to find free Platinum charts and prices, how to online spread trade on precious metals commodities like Platinum...read article: Platinum Spread Betting.
Nymex Spread Betting, updated 31-Jan-12
US Crude trading information, where to find free US Crude charts and prices, how to trade on Commodities including the Nymex West Texas market...read article: Nymex Spread Betting.
Crude Oil Spread Betting Starter Tips, updated 01-Jul-08
With crude oil prices at record highs and large fluctuations in the prices on a daily (and sometimes hourly) basis the big question is How to make a profit out of trading Crude Oil? 10 tips to get you...read article: Crude Oil Spread Betting Starter Tips.
Spread Betting on Coffee, updated 25-Aug-08
If you are looking to spread bet on coffee then there are a few facts that you should note eg coffee is considered to be price inelastic. This means that when coffee prices increase, individuals do not...read article: Spread Betting on Coffee.
Spread Betting on Wheat, updated 07-Dec-08
Spread betting on Wheat. For the latest data on commodities including how spread bet on Wheat, where to find narrow spreads and free...read article: Spread Betting on Wheat.
How to Spread Bet on Commodities, updated 22-Dec-11
How to Spread Bet on Commodities. A look at how to spread bet on commodities such as crude oil and orange juice. Plus a commodities price comparison and answers to a range of how to spread bet on commodities questions including finding free charts and live prices as well as...read article: How to Spread Bet on Commodities.
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