Commodities Trading

Both soft and hard Commodities, such as cocoa, coffee and copper, can be used as standalone trading opportunities or to complement a diversified portfolio. Capitalize on the rising and falling prices of these assets with CFDs and the best trading conditions in the industry offered by HFM.

WHY TRADE CFDs ON COMMODITIES WITH HFM

Ultra-fast execution

Trade on both rising and falling prices

Low margin requirements

Portfolio diversification

Instant access to global markets

Risk-free demo account

Commodities

Commodities Futures Contract Specifications

Swap values in margin currency Trading Hours
Symbol Description Spreads as low as Leverage (up to) Short Long Monday
Open
Friday
Close
Break
Cotton US Cotton No.2 0.29 1:66 0.0 0.0 4:05:00 21:19:59 -
Sugar Sugar #11 0.06 Floating 0.0 0.0 10:35:00 19:59:59 -
Copper Copper 0.008 Floating 0.0 0.0 1:05:00 23:57:59 -
Cocoa US Cocoa 10.0 1:66 0.0 0.0 11:50:00 20:29:59 -
Coffee Coffee 0.99 Floating 0.0 0.0 11:20:00 20:29:59 -
Swap values in margin currency Trading Hours
Symbol Description Spreads as low as Leverage (up to) Short Long Monday
Open
Friday
Close
Break
Copper Copper 0.008 Floating 0.0 0.0 1:05:00 23:57:59 -
Cotton US Cotton No.2 0.29 1:66 0.0 0.0 4:05:00 21:19:59 -
Cocoa US Cocoa 10.0 1:66 0.0 0.0 11:50:00 20:29:59 -
Coffee Coffee 0.99 Floating 0.0 0.0 11:20:00 20:29:59 -
Sugar Sugar #11 0.06 Floating 0.0 0.0 10:35:00 19:59:59 -
Swap values in margin currency Trading Hours
Symbol Description Spreads as low as Leverage (up to) Short Long Monday
Open
Friday
Close
Break
Cocoa US Cocoa 10.0 1:66 0.0 0.0 11:50:00 20:29:59 -
Copper Copper 0.008 Floating 0.0 0.0 1:05:00 23:57:59 -
Cotton US Cotton No.2 0.29 1:66 0.0 0.0 4:05:00 21:19:59 -
Coffee Coffee 0.99 Floating 0.0 0.0 11:20:00 20:29:59 -
Sugar Sugar #11 0.06 Floating 0.0 0.0 10:35:00 19:59:59 -

Important

  1. Swaps values may be adjusted daily based on market conditions and rates provided by our Price Provider applicable to all open positions. Triple swaps are applied every Wednesday.
  2. Server Times: Winter: GMT+2 and Summer: GMT+3 (DST) (last Sunday of March and ends last Sunday of October).
  3. All Pending Orders will be force closed during market breaks. In case any order is left pending, it will be automatically deleted after the daily market closure time.

Calculating Commodities Margin Requirements - Example

Account base currency: USD
Position: Open 1 lot BUY Cocoa at 2,692
1 Lot size: 10 Metric ton
Margin requirement: 1.50% of Notional Value
Notional value is: 1 * 10 * 2,692 = 26,920 USD
Margin required is: 26,920 USD * 0.015 = 403.80 USD

Contract Expiration Dates

Symbol January February March April May June July August September October November December
Copper 27/02/2024 26/04/2024 26/06/2024 28/08/2024 27/11/2024
Cocoa 21/02/2024 22/04/2024 20/06/2024 22/08/2024 20/11/2024
Coffee 19/02/2024 18/04/2024 18/06/2024 20/08/2024 18/11/2024
Cotton 21/02/2024 22/04/2024 20/06/2024 20/09/2024 20/11/2024
Sugar 28/02/2024 29/04/2024 27/06/2024 27/09/2024

WHAT IS COMMODITIES TRADING?

Commodities trading is the buying and selling of physical goods that are either grown, mined or extracted from the earth, such as gold, oil, coffee, sugar, and many others. These goods are used in the production of other goods and services, and as such, their prices can be influenced by a variety of factors such as supply and demand, weather conditions, geopolitical events, and more.

Investors and traders can participate in commodities trading through a variety of financial instruments, including futures contracts.

These instruments allow traders to trade on the future price movements of commodities, hedge against price risk and trade with leverage.

At HFM, you can trade CFDs on soft and hard commodities with leverage and ultra-fast execution.

You can choose between the MT4 and MT5 platforms and the HFM App to start trading CFDs on Commodities.

HOW TO START TRADING CFDs ON COMMODITIES

  • 2. Determine your trading strategy
  • 3. Choose your trading platform
  • 4. Find a commodity you want to trade
  • 5. Open and monitor your position

Ready to learn more about online trading?
Visit our online Trading Education Center for more.

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FAQs

Firstly, learn about the different types of commodities that are traded and their market dynamics. This can include reading industry reports, following commodity prices, and understanding supply and demand factors. Then, open an HFM Live or Demo trading account and choose your platform, strategy and trading opportunity. Open your position and monitor.

The price of commodities is influenced by a wide range of factors, including:

  1. Supply and Demand: The basic principle of supply and demand plays a significant role in determining commodity prices. If the supply of a commodity exceeds demand, prices may fall, whereas if demand exceeds supply, prices may rise.
  2. Geopolitical events: Geopolitical events, such as wars, natural disasters, and political instability can disrupt the supply of commodities and impact prices. For example, political unrest in oil-producing countries can lead to disruptions in oil supply, causing prices to rise.
  3. Weather conditions: Weather conditions such as droughts, floods, and hurricanes can impact the production of agricultural commodities, such as wheat and corn, and impact prices.
  4. Global economic conditions: The health of the global economy can impact the demand for commodities. During periods of economic growth, demand for commodities such as industrial metals and energy can increase, while during economic downturns, demand may decrease.
  5. Currency exchange rates: Commodity prices are often denominated in U.S. dollars, so changes in exchange rates can impact prices for buyers using other currencies.
  6. Government policies: Government policies such as trade tariffs, subsidies, and regulations can impact the production, consumption, and pricing of commodities.
  7. Seasonal factors: Some commodities, such as natural gas and heating oil, have seasonal demand patterns that can impact prices.

The most traded commodities in the world include:

  • Crude Oil
  • Gold
  • Natural Gas
  • Corn
  • Copper

At HFM, we offer multiple account types to suit the specific requirements of different traders. Whatever your trading strategy, level of funding or appetite for risk, there is an account to match your needs. Please, check our Accounts Page for more information.

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