The Commodities markets such as Gold and Oil are popular with traders due to their trending nature and sometimes rapid moves resulting from geopolitical and economic risks and uncertainty, as well as sudden dramatic shifts in supply and demand.
This potential for high volatility and large price moves combined with 24/5 trading, and generous trading conditions, has made the commodities market a place of risk and reward for the advanced trader.
Trading commodities with ExpressOptions is very much like trading FX. Instead of buying or selling an amount of base currency against a counter currency, you are buying or selling a number of units of a commodity against the US dollar.
For example, one contract of XAUUSD is 100 ounces of Gold while one contract of WTIUSD is 1000 barrels of West Texas Intermediate crude oil.
Commodities trade almost 24/5, have overnight financing and do not expire.
The gross profit on your rate is calculated as follows:
2,000 barrels UKOIL x 64.614 = 129,228 USD
129,228 USD x 1% = 1,292.28 USD
2,000 barrels UKOIL x 67.543 = 135,086.00 USD
$5,858.00 USD
The price of Brent crude oil is 64.604 bid /64.614 ask. You would like to buy 2,000 barrels at 64.614 ask price. (1 lot = 1,000 barrels)
You have 6,000 AUD balance and the leverage is 1:100
3 weeks later, Brent crude oil CFD has increased to 67.543.
Since you are in profit, you would like to take your profit by selling your 2,000 barrels at 67.543.
View our trading conditions across our full range of products to see how trading with ExpressOptions is your next best move.
Instrument |
XAGUSD | XAUUSD | XPDUSD | XPTUSD | XTIUSD | UKOIL |
Minimum Spread |
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Average Spread |
1.1c | 12.8c | 1290c | 95c | 1.6c | 1.6c |
Disclaimer: Spreads from ‘Trade Proofer’ monthly spread data September 2019 report.
46 FX, 6 Commodities, 10 Indices, 5 Crypto
Individual, Joint, Corporate and Trust accounts
7 AUD, 7 USD, 6.2 EUR, 5.4 GBP, 9.5 SGD, 9 CAD
Is about achieving the best possible result for our clients trades. Our aim is to be the #1 retail broker in the world for pricing and execution...
Find out MoreThis means explaining exactly how we make money, how trades are executed and with whom, so traders can make an informed decision...
Find out MoreThe ECN model was born to facilitate high volume, off exchange, anonymous trading, across a range of market asset classes...
Find out More