How Commodity CFDs Work
Commodity CFDs track oil, gold, silver, gas and crops, usually via futures. How they are priced, margin limits, contract rolls and the lessons of oil in 2020.
CFD education by market group.
Commodity CFDs track oil, gold, silver, gas and crops, usually via futures. How they are priced, margin limits, contract rolls and the lessons of oil in 2020.
At a futures roll, a commodity CFD's price jumps by the gap between contracts and providers offset it in cash. A worked example on 100 barrels of oil.
Commodities often rise when inflation surprises, as in 2022 when they gained about 18% while stocks and bonds fell. Why they can hedge inflation and fail.
The CFTC's COT report shows weekly how hedgers and speculators are positioned in US futures. How to read net positions, spot extremes and avoid timing traps.
List your free hours, match them to sessions, pick pairs active then, check spreads and volatility, and test first: choosing currency pairs for your schedule.
Owning an asset gives you the asset and its rights; a CFD gives price exposure, easy shorting and leverage, with financing costs. A side-by-side comparison.
A CFD trade's cost adds up the spread, any commission, overnight financing and conversion fees. A worked example on a share CFD shows how 5,000 costs about 2.
Position size = risk amount ÷ (stop distance × value per point). Worked examples for a currency pair and an index CFD, and why margin is not the guide.
Holding a cash CFD past the daily cut-off triggers a financing charge or credit: a benchmark rate plus a fee. How it works for indices, shares, FX and more.
A market order fills now at the best price; a limit fills only at your price or better; a stop triggers at a set level. How each CFD order type works.
CFD margin equals position value divided by leverage. Worked examples for a currency pair and a share CFD, and what changes the margin you need.
Margin is the deposit a provider requires to open and keep a leveraged CFD position. How initial margin, used and free margin work, and the risks.