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 |
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
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 advantages of
Spread Betting as well as commission free CFD Trading on 2,500+ markets, 24 hour trading, professional level charts and..." 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 advantages of
Spread Betting as well as commission free CFD Trading on 2,500+ markets, 24 hour trading, professional level charts and..." 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 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.
'How to Spread Bet on Commodities' by JW, updated 07-May-13
For related pages also see:
Spread Trading Crude Oil - 6 Week Look at Supply and Demand, updated 01-Jul-08
There have been many column inches written about the current Crude Oil Bull market. However even during this Bull run there have been many ups and downs. Especially during the last 4 to 6 weeks. So we thought we would have a look at recent events that have actually made a difference to the prices at Financial Spreads ...read article: Spread Trading Crude Oil - 6 Week Look at Supply and Demand.
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.
Updated Financial Spread Betting Blog - Brent Crude Oil Trading, updated 16-Aug-07
The Brent Crude Oil price had been dropping since it the price reached a high of $78.12 dollars per barrel on 1 August. Then since 8 August the price has been fairly steady. Today it hit a high of $71.90 and a low of $69.03 before closing at $69.73. Falling financial markets will...read article: Updated Financial Spread Betting Blog - Brent Crude Oil Trading.
Spread Bet on Brent Crude Oil, updated 11-Dec-08
Q) Where can I Spread Bet on Crude Oil? Q) How to Spread Bet on Crude Oil? Q) Where can I find free Crude Oil Trading News?...The Answers...read article: Spread Bet on Brent Crude Oil.
Financial Spread Betting on Gold, updated 07-Dec-08
Spread betting on Gold - the latest market information on Gold. Plus where to find the best prices, free chats and...read article: Financial Spread Betting on Gold.
Financial Spread Bet on Commodities, updated 07-Dec-08
Spread Bet on Commodities - spread bet on commodities such as Brent Crude Oil and Metals such Gold, Copper and Lead...read article: Financial Spread Bet on Commodities.
How to Spread Bet on Commodities, updated 07-May-13
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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Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
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