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AIMS offers a flexible and easy way to gain exposure to some of the world’s most popular CFDs on Commodities including energies and metals all from within your ST5, cTrader and TradingView trading platforms.
Commodity markets are attractive to speculators as they are susceptible to dramatic changes in supply and demand.
Commodities CFDs
Facts
- Over 22 CFDs on Commodities to trade
- Energy, Agriculture and Metals
- Spot and Futures CFDs
- Leverage up to 1:1000
- Spreads as low as 0.0 pips
- Deep liquidity
Energies
AIMS allows trading of spot energy contracts including Crude Oil, Brent, and Natural Gas from your chosen trading platform against the US Dollar.
Trading energy contracts as a spot instrument has many advantages for investors who are only interested in price speculation.
Precious Metals
AIMS allows trading the spot price for metals including Gold or Silver against the US Dollar or Euro and the metals Platinum or Palladium against the US Dollar as a currency pair on 1:1000 leverage.
Soft CFDs on Commodities
In addition to energy and metal contracts, at AIMS we offer a range of soft commodity products to trade, including corn, soybeans, sugar, cocoa, coffee, and wheat as CFDs – all with low spreads and leverage up to 1:100.
How does CFDs on Commodities trading work?
CFDs on Commodities cover energy, agriculture and metals products. These products are traded in futures markets and derive their value from demand and supply characteristics.
Supply characteristics include the weather in the case of agriculture and costs of extraction in the case of mining and energies.
Demand for CFDs on Commodities tends to be characterised by broader conditions such as economic cycles and population growth. CFDs on Commodities can be traded as stand alone products or in pairs.
Metals and energies are traded against major currencies whereas agriculture futures contracts are traded as stand-alone contracts.
Commodity trading example
Buying: Wheat
The gross profit on your trade is calculated as follows:
Opening Price
Closing Price
Gross Profit on Trade
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
Commodities CFDs