Commodities

Commodities are raw materials such as precious metals, coffee, or sugar that are traded based on the global trends of supply and demand. Commodity CFDs allow exposure to Commodities without any costs usually related to the physical delivery and storage of the respective commodity.

Commodity CFDs are over-the-counter (OTC) leveraged financial instruments the value of which is determined based on the movement of the value of the underlying Commodity Futures. The client makes a profit or a loss on the CFD based on the direction chosen (buy or sell) and the value of the underlying Commodity Futures. The amount of profit or loss is determined based on the value of the underlying Commodity Futures at the opening of a position and its value at closing of the same position. The Commodity CFD is settled in cash only and the client has no rights whatsoever to the actual underlying asset.