CFD Commodities

  • It is now possible to trade commodities futures CFDs with City Index, including US crude oil, coffee, corn, cotton, cocoa and soyabean meal. 

    Commodities CFD Trading Example

    Concerns over the pace of crude oil stockpiling is causing fluctuations in the price of US crude oil.  

    Going Long

    Let's say our US crude oil August 12 CFD price is 78.80/78.86 (sell price/buy price). US crude oil bet per is 0.01.

    You think that demand for US crude oil is rising, and expecting prices to rally, decide to buy (go long) 2 CFDs at 78.86 (buy price). 

    You were right: Over the coming days, the price of US crude oil rises on surging demand. When prices reach 80.10, you decide to cash in your profits. We are now quoting a US crude oil CFD price of 80.10/80.16. To close your trade, you now sell 2 CFDs at 80.10. 

    Result: You bought at 78.86 and sold at 80.10, representing a 124-point movement in your favour, which at your trade size of 2 CFDs nets you a profit of $248 (80.10 – 78.86 x 2 CFDs). 

    Alternative scenario: If however, you were wrong and US crude oil prices had fallen to 77.62, you would net a $248 loss (78.86 - 77.62 x 2 CFDs).

    Going Short

    You think that US crude oil stock piles are outpacing demand, and expecting prices to fall, decide to sell (go short) 2 CFDs at 78.80 (sell price). 

    You were right: Over the coming days, the price of US crude oil falls on weakening demand. When prices reach 77.54, you decide to cash in your profits. We are now quoting a US crude oil CFD price of 77.48/77.54. To close your trade, you now buy back 2 CFDs at 77.54. 

    Result: You sold at 78.80 and bought back at 77.54, which represents a 126-point movement in your favour, which at your trade size of 2 CFDs, nets you a profit* of $252 (78.80 – 77.54 x 2 CFDs) (note US crude oil bet per is 0.01). 

    Alternative scenario: If, however, you were wrong and US crude oil prices had risen to 80.06, you would net a $252 loss (80.06 - 78.80 x 2 CFDs).  

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