Commodities

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Commodities

Commodities Futures Contract Specifications


Symbol Description Typical Spreads in quote
currency per unit
Leverage (up to) Short Long Monday
Open
Friday
Close
Break
Cocoa US Cocoa 9.0 1:66 -0.5 -1.58 11:45:00 20:29:59
Coffee Coffee 0.98 Floating -0.51 -1.54 11:15:00 20:29:59
Copper Copper 0.008 Floating -0.53 -1.58 1:00:00 23:59:59 Daily 23:59:59 – 01:00:00
Cotton US Cotton No.2 0.28 1:66 -1.0 -3.3 4:00:00 21:19:59
Sugar Sugar #11 0.06 Floating -0.13 -0.39 10:30:00 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

Notional value is: 1 * 10 * 2,692 = 26,920 USD

Margin required is: 26,920 USD * 0.015 = 403.80 USD

Commodities Contract Expiration Dates


Symbol January February March April May June July August September October November December
Coffee 18/02/2020 20/04/2020 18/06/2020 19/08/2020 17/11/2020
Copper 26/02/2020 28/04/2020 26/06/2020 27/08/2020 26/11/2020
Sugar 27/02/2020 29/04/2020 29/06/2020 29/09/2020 30/12/2020
Cocoa 12/02/2020 15/04/2020 15/06/2020 14/08/2020 12/11/2020
Cotton 20/02/2020 22/04/2020 22/06/2020 22/09/2020 19/11/2020

Commodities Market characteristics

Commodity is a raw material, such as natural resources or agricultural products, used in commerce. Coffee, Sugar and Copper are among the most commonly traded commodities in the markets.

Commodity prices are influenced by economic, political and environmental factors such as:
• Supply and Demand • Technological advances • Geo-political tensions • Weather conditions • Natural disasters

Commodities can be an important means for investors to diversify their portfolio. Gloffix offers traders and investors the opportunity to participate in the commodity markets by trading derivatives on a range of metals, energies and soft commodities with low margin requirements and hedging strategies allowed to manage their price exposure.

Get the confidence of trading with an awarded multi-asset broker. Start trading derivatives on Commodities with Gloffix!

Gloffix-Commidities

Popular Energies

Energies Spot Contract Specifications


Symbol Description Typical Spreads in quote
currency per unit
Leverage (up to) Short Long Monday
Open
Friday
Close
Break
UKOIL.S UK Brent Oil 0.08 1:66 -0.5 -3.0 3:00:00 23:59:59 Daily 23:59:59 – 03:00:00
USOIL.S US Crude Oil 0.09 1:66 -0.5 -3.0 1:05:00 23:59:59 Daily 23:59:59 – 01:00:00

Energies Futures Contract Specifications


Symbol Description Typical Spreads in quote
currency per unit
Leverage (up to) Short Long Monday
Open
Friday
Close
Break
UKOIL UK Brent Oil 0.07 1:66 -0.7 -1.7 3:00:00 23:59:59 Daily 23:59:59 – 01:00:00
USOIL US Crude Oil 0.06 1:66 0.0 -3.0 1:05:00 23:59:59 Daily 23:59:59 – 01:00:00

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. Swaps for USOil and UKOil are expressed in US Dollars.

2. Server Times: Winter: GMT+2 and Summer: GMT+3 (DST) (last Sunday of March and ends last Sunday of October).

3. During the time period from 23:55 to 00:05 server time increased spreads and decreased liquidity can take place due to daily bank rollover. In case of inadequate liquidity/spreads during bank rollover, widened spreads and excessive slippage may occur. Therefore orders may not be executed during these times.

Calculating Energies Margin Requirements – Example

Account base currency: USD

Position: Open 10 lots BUY USOIL at 43.20

1 Lot size: 100 Barrels

Margin requirement: 2.0% of Notional value

Notional value is: 10 * 100 * 43.20 = 43,200 USD

Margin required is: 43,200 USD * 0.02 = 864 USD

Contract Expiration Dates


Symbol January February March April May June July August September October November December
UK Oil 30/01/2020 27/02/2020 01/04/2020 29/04/2020 28/05/2020 29/06/2020 30/07/2020 27/08/2020 29/09/2020 29/10/2020 27/11/2020 29/12/2020
US Oil 20/01/2020 18/02/2020 18/03/2020 17/04/2020 15/05/2020 18/06/2020 17/07/2020 18/08/2020 18/09/2020 16/10/2020 18/11/2020 17/12/2020

Energies Trading

Gloffix offers derivatives trading on spot energies, such as Brent and Crude Oil, which are among the most actively traded commodities worldwide.

Crude Oil is the most actively traded commodity worldwide and its high volatility makes it a popular choice for short-term traders who search for potential trading opportunities in the fast price movements of this market. However, it has to be noted that volatility may create opportunities but at the same time creates more risk to your investment.

Generally, energies are innately volatile markets because of the direct impact that world events can have on supply. Numerous political and environmental factors can affect energy prices, and therefore supply and demand, including economic growth, political instability in oil and gas producing countries, weather forecasts as well as extreme weather conditions and government regulations.

Trading Derivatives on energies allows for portfolio diversification and greater flexibility as you can trade freely without owing the actual asset.

Popular Metals

Trade Derivatives on Gold and other spot metals with Gloffix and get a competitive edge in the dynamic precious metals market.

Metals Spot Contract Specifications


Symbol Description Typical Spreads in quote
currency per unit
Leverage (up to) Short Long Monday
Open
Friday
Close
Break
Palladium Palladium 11.4 1:20 -0.54 -1.61 1:00:00 23:59:59 Daily 23:59:59 – 01:00:00
Platinum Platinum 4.31 Floating -0.5 -1.5 1:00:00 23:59:59 Daily 23:59:59 – 01:00:00
XAGEUR Silver/Euro 0.036 1:100 -2.2 -5.0 1:00:00 23:44:59 Daily 23:59:59 – 01:00:00
XAGUSD Silver/US Dollar 0.03 1:100 -2.2 -5.0 1:00:00 23:44:59 Daily 23:59:59 – 01:00:00
XAUEUR Gold/Euro 0.49 1:200 -5.0 -4.2 1:00:00 23:44:59 Daily 23:59:59 – 01:00:00
XAUUSD Gold/US Dollar 0.19 1:200 -0.9 -5.6 1:00:00 23:44:59 Daily 23:59:59 – 01:00:00

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. Swaps for XAU and XAG swaps are expressed in pips per 1 lot.

2. Server Times: Winter: GMT+2 and Summer: GMT+3 (DST) (last Sunday of March and ends last Sunday of October).

3. During the time period from 23:55 to 00:05 server time increased spreads and decreased liquidity can take place due to daily bank rollover. In case of inadequate liquidity/spreads during bank rollover, widened spreads and excessive slippage may occur. Therefore orders may not be executed during these times.

Calculating Metals Margin Requirements – Example

Account base currency: USD

Position: Open 10 lots BUY XAUUSD at 1,316.99

1 Lot size: 100 Ounces

Margin requirement: 0.5% of Notional value

Notional value is: 10 * 100 * 1,316.99 = 1,316,990 USD

Margin required is: 1,316,990 USD * 0.005 = 6,584.95 USD

Trading Gold and Precious Metals

Highly valued since ancient times, precious metals, and gold in particular, have always been associated with monetary wealth. On the financial markets, precious metals investments tend to hold their value over long periods of time.
Thus they provide a long-term safe haven for commodity traders. Factors affecting precious metals’ prices:

Supply and Demand

With the increase of demand, metal prices rise whereas when the demand is weak the value of precious metals declines.

Value of the U.S. Dollar

As the precious metals are dollar-denominated their price is generally inversely related to the value of the US dollar.

Inflation

Inflation has a direct effect on the price of precious metals. Generally, rising levels of inflation tend to raise the price of precious metals.

Industrial demand

Technology and industrial uses for gold, such as the demand for jewelry and electronics, can make the price of precious metals rise.

Investing in precious metals can help traders hedge against market volatility, political uncertainty, and economic collapse. It can also be an important part of a diversified long-term investment portfolio.

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