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Commodities

By trading in commodities you are buying and selling the world’s raw materials and minerals. Buy and sell valuable metals such as gold and silver, livestock and crops, and energy products such as crude oil. Traditionally, commodities were the realm of the professional active trader. CFD commodity trading has made this extremely interesting sector accessible.

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Relatable

Gold, silver and oil are familiar products, making their market behaviour more understandable.

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Trade Global Events

Some assets are affected by both political and natural global events.

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Inflation Protection

Some commodities have the potential to hold their value when currency depreciates.

Trade Commodities with Infinox

If you’re looking at diversifying your portfolio, trading commodity CFDs offers a relatable option. Unlike some financial products, we all know what commodities are. Gold, silver and oil are familiar and tangible making them more understandable as trading products for many. Bear in mind, commodities are strongly influenced by world events, so unrest or conflict in an oil producing nation can cause oil prices to fluctuate. Likewise, drought or other natural events can affect the prices of crops or livestock. Trading in commodities can be particularly popular when other markets are stagnant or in decline (bearish). For example when currency prices fall, commodity prices can rise as their value against the currency goes up (bullish). Take a look at the commodities CFDs on offer with Infinox.

Symbol Product Typical Spread Leverage
XAGUSD Silver 27 1:20
XAUUSD Gold 22 1:10
USOUSD WTI Oil 50 1:10
UKOUSD Brent Crude 50 1:10

To see a complete list of spreads, margins and leverages for all Infinox products click here

Commodities Trading Example

Example Gold

Buy 1 lot of Gold (XAUUSD) @ 1293.60
Close @ 1323.60
Lots: 1 (equal to 100*1293.60)
Leverage: 1:20

Required margin = Contract Size / Leverage * Market Price
100/20*1293.60
= $6468

P&L = (Close Price – Open Price) * Contract Size * Lots
(1323.60 – 1293.60)*100*1
= $3,000.00

Example Silver

Buy 1 lot of Silver (XAGUSD) @ 15.706
Close @ 15.816
Lots: 1 ( equal to 5,000*15.706)
Leverage: 1:10

Required margin = Contract Size / Leverage * Market Price
5,000/10*15.706
= $7850

P&L = (Close Price – Open Price) * Contract Size * Lots
(15.816 – 15.706)*5,000*1
= $550.00

Example Brent Crude

Buy 1 lot of Brent (UKOUSD) @ 61.563
Close @ 62.583
Lots: 1 ( equal to 100*62.583)
Leverage: 1:10

Required margin = Contract Size / Leverage * Market Price
100/10*61.563
= $615.63

P&L = (Close Price – Open Price) * Contract Size * Lots
(62.583 – 61.563)*100*1
= $102.00

Market Sentiment Analysis

Staying up to date with market developments is one of the most important factors of financial trading. Do your research, keep your ears to the ground and you could be one step ahead of the Bull and the Bear. IX Labs is our unique tool which uses AI to read thousands of unique news items per day, indicating market sentiment from across the industry in a bold visual style. See at a glance what traders are saying. Read the important headlines from within your trading platform and be among the first to know which way the market is heading.

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