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
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 gives producers, consumers and traders in raw materials the ability to limit their risks by hedging against adverse price movements.
Speculators continue to be 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
IG Index offers a diverse 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 the key metals, such as Gold and Silver, as well as a broad range of softs, including London Cocoa, Coffee Robusta and London Wheat. To see a full range of our commodities markets take a look at Commodities Bet Details.
Commodities spread betting with IG Index
Spread betting on commodities with IG Index offers a number of advantages over trading the equivalent futures markets.
- The ability to take smaller minimum bet sizes than are possible in the underlying futures contracts
- The flexibility to go long or short on a range of markets
- The use of a range of Controlled Risk features, such as Guaranteed Stops and Trailing Stops
- There is no currency risk, as your bet is opened on the basis of £1 per point
It is important to be aware that although commodity prices can remain relatively static for long periods, 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. The 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 Index. If you are concerned by this possibility, we would strongly suggest that you use Controlled Risk bets, where you are guaranteed that, if the price gets to your stop level, your bet will be closed at the 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 Thursday at noon. Along with accompanying performance charts displaying recent price movements, our Research Analyst Anthony Grech explains the factors influencing current trends in key commodities markets, such as Gold, Oil and Copper. You can also learn more about spread betting and some of the techniques involved with one of our free online seminars.
Getting started
Our TradeSense education course is a free, six-week guide to spread betting. The programme allows you to place bets starting at just 10p a point, so you can increase your bet size as you increase your proficiency.