Corex Market provides a versatile and straightforward method for gaining exposure to some of the world’s most sought-after CFDs on Commodities, including energies and metals, all from within your cTrader trading platform.
Commodity markets appeal to speculators due to their sensitivity to significant fluctuations in supply and demand dynamics.
Energies
Corex Market enables the trading of spot energy contracts, including Crude Oil, Brent, and Natural Gas, from your cTrader platform against the US Dollar.
Trading energy contracts as a spot instrument presents numerous benefits for investors primarily interested in price speculation.
Precious Metals
Corex Market facilitates the trading of spot prices for metals including Gold and Silver against the US Dollar or Euro, as well as the metals Platinum and Palladium against the US Dollar as a currency pair.
Soft CFDs on Commodities
Apart from energy and metal contracts, Corex Market also offers a variety of soft commodity products for trading. These include corn, soybeans, sugar, cocoa, coffee, and wheat as CFDs – all available with narrow spreads and leverage up to 1:100.
How does CFDs on Commodities trading work?
CFDs on Commodities span energy, agricultural, and metal products. These products are traded in futures markets, and their value is derived from demand and supply characteristics.
Supply characteristics include factors such as weather for agricultural products and extraction costs for mining and energy commodities.
The demand for CFDs on Commodities is usually influenced by broader conditions like economic cycles and population growth. Commodities CFDs can be traded either as standalone products or in pairs.
Metals and energy commodities are traded against major currencies, while agricultural futures contracts are typically traded as standalone contracts.
Commodity trading example
The gross profit on your trade is calculated as follows:
Opening Price
$435.25 * 100 contracts * 4 = USD $174,100
Closing Price
$460 * 100 contracts * 4 = USD $184,000
Gross Profit on Trade
USD $184,000 – $174,100 = $9,900
Opening the Position
Wheat_N7 is currently trading at 434.00/435.25 and you are expecting Australia’s East Coast crops to be affected by adverse weather patterns over the coming year which will result in lower than average crop yields.
You buy 100 contracts of Wheat (4 bushels per contract) at 435.25 which equals USD $174,100 (435.25 * 100 * 4).(4 bushels per contract) at 435.25 which equals USD $174,100 (435.25 * 100 * 4).
Closing the Position
Your research surrounding weather conditions turns out to be correct. Lower crop yields this year have caused Wheat prices to increase to 460.00/462.15. You exit your position by selling your contracts at 460.
Spreads