CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Commodities are simply goods which are bought and sold at a market price on the basis that quality of the goods is the same irrespective of the origin and supplier.
For example, crude oil from the UK should be the same as crude oil sold in any other location, and the standard unit of measurement is the barrel.
Most commodities will have some standards related to their quality etc which is understood by everyone who trades them.
Trading on commodities is a good way to diversify your portfolio as commodity prices are generally less influenced by changes in stock markets.
Spread betting and CFDs let you speculate on commodities and benefit from their rising or falling prices.
For example, the FTSE 100 comprises the top 100 UK companies measured by market capitalisation (the price of their shares multiplied by the number of shares in circulation).
The relative market capitalisation of a company determines their weighting within the UK100. For example, 1% change in the price of Royal Dutch Shell will impact the UK100 more than a 1% change in Tullow Oil as Shell has a larger market capitalisation.
We offer tight spreads on:
We also offer competitive margins when spread betting, as low as 5% on Spot Gold, 10% on Silver and 10% on US Crude Oil Futures.
Trading this way has two key advantages over traditional share dealing: