COMMODITY TRADING

Read more at: http://www.igmarkets.com.sg/cfd/commodities.html

Commodities represents one of the world's volatile markets. Political situations, fluctuating levels of supply and even changes in the weather can have dramatic effects on commodity prices.

Commodity markets

A major trait of the commodity markets is its susceptibility to fluctuating supply and demand. The ability to buy or sell forward on regulated exchanges gives producers, consumers and traders in raw materials the power to limit their risks by hedging against adverse price movements.

Investors are attracted to commodity futures markets by the potential for dramatic price movements and a trading mechanism that makes short selling as easy as buying.

Large choice of commodities

IG Markets offers a diverse range of commodities markets, including both Spot and Futures CFDs on some of our most popular markets. Deal in the headline-making energy markets, like Brent and US Light Crude Oil, or trade the key metals such as Gold and Silver and more. IG Markets clients also trade CFDs on a broad range of softs including Chicago Wheat and US Cotton. To see a full range of our commodities markets take a look at Commodities Contract Details.

Commodities CFD trading with IG Markets

Trading CFDs on commodities with IG Markets offers a number of advantages over trading the equivalent futures markets.

• The ability to trade in smaller sizes than is possible in the underlying futures contracts
• The flexibility to go long or short on a range of markets
• SGD-denominated CFDs let you trade a range of internation commodities in Singapore dollars, eliminating your currency risk
• The use of a range of Risk Management features, such as Guaranteed Stops and Trailing Stops

It is important to be aware that although commodity prices can remain relatively static for long periods, they can also make dramatic moves. Coffee and cocoa, for example, are capable of doubling or halving in price over a relatively short period. These risks are compounded by the fact that 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 IG Markets. If you are concerned by this possibility, we would strongly suggest that you use Guaranteed Stops where you are guaranteed that, if the price gets to your stop level, your trade will be closed at your specified level regardless of market conditions.

Broaden your commodities knowledge

To learn more about what's happening in commodities markets, take a look at our weekly Commodities Update, released every Friday. Along with accompanying performance charts displaying recent price movements, our research analysts explain the factors influencing current trends in key commodities markets, such as Gold, Oil and Copper. You can also learn more about CFD trading and some of the techniques involved with one of our free online seminars.