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.
The types of commodities you can trade with Spread Co are:
- Precious metals – such as gold and silver
- Energy – crude oil
Trading on commodities
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.
Why choose Spread Co for commodities trading?
We offer tight spreads on:
- Spot Gold – 4 points
- US Crude Oil Future – 4 points
- Spot Silver – 2.5 points
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.