Commodities



Trading with commodities has been known to people from ancient times when only barter trade was used before currencies existed.


Commodity trading still exists today on a much larger scale and takes place on commodity markets.


A commodity is a basic good used in trading via futures contracts. Many traders use commodity futures to speculate on future price movements. These investors analyze various events in the market to speculate on future supply and demand.


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Why invest

With FGMarkets, you get the most favourable conditions

on the market:

SUPPORT 24 HOURS A DAY, 5 DAYS A WEEK
We provide the best personal, over-the-phone support to our clients in 10 languages free of charge. With an elite account, you will be provided with a personal trading specialist.
LESS MANIPULATION
Governed by international price movements, commodity markets are less prone to rigging or price manipulation.
NEEDS LESS ATTENTION
Since these are long-term transactions, investing in commodities does not require your everyday market activity.
LOW RISK
You can take a position in a particular commodity by paying only a fraction of that value as margin where the commodity futures market’s margins are lower than equity futures and options.
DIVERSIFICATION
Commodity prices are prone to supply-demand dynamics, weather conditions, geopolitical tensions, and natural disasters. Therefore it can prove to be an effective means of diversification.

How it works

Trading with commodities is a common business for large corporations, states and other major institutions. However, this is an also an opportunity to be seized for individual investors.


Trading is not done directly with physical commodities, but rather with their derivatives, which are the base assets of certain commodities. These are not term transactions – i.e. what we buy today will have a fixed date assigned for the transaction to take place. We determine whether we make a profit or loss from the future price. Many investors are attracted to this market due to the fact that in the first phase, they pay only the margin: i.e. only a small portion of the commodity’s real value.



How to invest

Simply create a trading account, deposit your funds, sign into the application and you are ready to start.


With an FGMarkets account, a broad range of commodities including: precious metals, agricultural products, and many others will be available to you for trading.


When trading in commodities, we recommend that you make use of diversification, which will make your investments more varied to balance out profits and losses.



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Symbol Leverage (max) Swap Long Swap Short Max Order Size Size of 1 Lot Spread Trading Hours
Cocoa 1:100 -22,689 -11,344 20 100 floating 11:50 – 20:35
Coffee 1:100 -1,565 -0,783 20 1 000 floating 11:20 – 20:25
Copper 1:100 -2,973 -1,486 20 1 000 70 01:05 – 23:55
Corn 1:100 -4,056 -2,028 20 1 000 floating 03:05 – 15:40 , 16:35 – 21:10
Cotton 1:100 -0,8613 -0,3547 20 1 000 floating 04:05 – 21:15
NaturalGas 1:50 -0,327 -0,164 20 10 000 floating 01:05 – 23:55
Platinum 1:100 -9,692 -5,815 20 100 floating 01:05 – 23:55
Rice 1:100 -0,108 -0,054 20 10 000 floating 03:05 – 04:55 , 16:35 – 21:10
Soybeans 1:100 -11,135 -5,567 20 1 000 floating 03:05 – 15:40 , 16:35 – 21:10
Sugar 1:100 -0,1609 -0,0663 20 10 000 floating 10:35 – 19:55
USOil 1:100 -0,5263 -0,2167 20 1 000 floating 01:05 – 23:55
Wheat 1:100 -4,857 -2,429 20 1 000 floating 03:05 – 15:40 , 16:35 – 21:10
XAGUSD 1:100 -1,742 -1,045 20 10 000 floating 01:05 – 23:55
XAUUSD 1:100 -17,453 -2,493 20 100 floating 01:05 – 23:55

The spreads provided are a reflection of the time-weighted average. Though FGMarkets attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.