New to commodities?
Commodities markets are some of the most volatile in the world.
Political situations, fluctuating levels of demand for resources and even changes in the weather can have dramatic effects on commodity prices.
Commodity markets can be characterised by sometimes dramatic changes in supply and demand and consequent price volatility. The ability to buy or sell forward on regulated exchanges enables producers, consumers and traders in raw materials to limit their risks by hedging against adverse price movements.
Speculators are attracted to commodity futures markets by the prospect of dramatic price movements and a trading mechanism which makes short selling as easy as buying.
Large choice of commodities
We offer a range of commodities markets, including both spot and futures spread bets on some of our most popular markets.
You can deal in all the headline-making energy markets, like Brent and US Light Crude Oil, Heating Oil and No Lead Gasoline. We also offer metals such as Gold and Silver, as well as a broad range of softs, including London Cocoa, Coffee Robusta and London Wheat.
Explore all of our commodities markets on our commodities bet details page.
Commodities spread betting with us
Spread betting on commodities with us offers a number of advantages over trading the equivalent futures markets, including:
- Smaller minimum bet sizes than are possible in the underlying futures contracts
- The flexibility to go long or short on a market
- A range of stops and limits
- No currency risk, as your bet is opened on the basis of £1 per point
What are the risks?
Commodity prices can remain relatively static for long periods, but they can also make dramatic moves. Coffee, cocoa and orange juice, for example, are capable of doubling or halving in price over a relatively short period.
Many of these markets operate a system of price limits which mean that you could be locked into mounting losses for several days in a row with no opportunity to cut your position. You cannot sell a contract which is 'limit down' or buy one which is 'limit up', either in the underlying market or with us.
If you are concerned by this possibility, we would strongly suggest that you use controlled risk bets, which guarantees your bet will be closed at a specified level regardless of market conditions.
Broaden your commodity trading knowledge
We offer a range of tools to help you develop your knowledge of the commodities markets:
Spread bets are leveraged products. Spread betting may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.