What is Commodities Trading?

Commodities are raw materials and primary agricultural products that are traded on global exchanges. They are broadly categorised into energy commodities (such as crude oil and natural gas), agricultural commodities (such as wheat, corn, and coffee), and soft commodities (such as cotton and sugar).

Commodity prices are driven by fundamental factors including global supply and demand dynamics, geopolitical events, weather patterns, economic growth forecasts, and currency fluctuations. This makes commodity trading an excellent way to diversify your portfolio beyond traditional forex and equity markets.

At N1CM, you can trade commodity CFDs without the need to physically own or store the underlying assets. Our competitive spreads, flexible leverage, and advanced trading platforms make commodity trading accessible and efficient for traders of all experience levels.

Why Trade Commodities with N1CM?

Portfolio Hedging

Commodities often move independently of stock markets, making them an effective hedge against inflation and economic downturns. Protect your portfolio with strategic commodity positions.

Global Demand Drivers

Commodity prices respond to real-world events including supply disruptions, seasonal demand changes, and geopolitical tensions, creating frequent trading opportunities throughout the year.

Flexible Leverage

Access leverage up to 1:200 on energy commodities and up to 1:100 on agricultural products. Trade larger positions with less capital while managing risk with our advanced tools.

No Physical Ownership

Trade commodity CFDs without worrying about storage, delivery, or expiration dates. Simply speculate on price movements and close your position when you are ready to take profit.

Energy Commodities

Energy commodities are among the most actively traded instruments in the world. Crude oil and natural gas prices impact virtually every sector of the global economy.

Symbol Commodity Contract Size Spread From Leverage Up To Trading Hours (GMT)
USOIL WTI Crude Oil 1,000 barrels 0.03 1:200 01:00 - 24:00
UKOIL Brent Crude Oil 1,000 barrels 0.03 1:200 03:00 - 24:00
NGAS Natural Gas 10,000 MMBtu 0.005 1:100 01:00 - 24:00

Agricultural & Soft Commodities

Agricultural commodities provide unique trading opportunities driven by seasonal patterns, weather conditions, and global consumption trends.

Symbol Commodity Contract Size Spread From Leverage Up To Trading Hours (GMT)
WHEAT Wheat 5,000 bushels 0.50 1:50 01:00 - 19:45
CORN Corn 5,000 bushels 0.40 1:50 01:00 - 19:45
SOYBEAN Soybeans 5,000 bushels 1.00 1:50 01:00 - 19:45
COFFEE Coffee Arabica 37,500 lbs 0.30 1:50 11:15 - 20:30
SUGAR Sugar No. 11 112,000 lbs 0.03 1:50 10:30 - 20:00
COTTON Cotton No. 2 50,000 lbs 0.20 1:50 04:00 - 21:20
COCOA Cocoa 10 metric tons 3.00 1:50 11:45 - 20:30

Benefits of Commodity Trading

  • Inflation Protection: Commodity prices tend to rise during periods of inflation, making them a natural hedge against the erosion of purchasing power in your portfolio.
  • Supply & Demand Fundamentals: Commodity prices are driven by tangible, real-world factors that are easier to analyse, including weather, production data, and inventory levels.
  • Seasonal Trading Patterns: Many agricultural commodities follow predictable seasonal patterns, creating recurring opportunities for well-informed traders.
  • Geopolitical Sensitivity: Energy commodities in particular respond to geopolitical developments, offering opportunities when conflicts or policy decisions impact supply chains.
  • Portfolio Diversification: Commodities have historically shown low correlation with equities and bonds, providing genuine diversification benefits when added to a balanced portfolio.
  • High Volatility Opportunities: Commodity markets can experience significant price swings, offering traders the potential for substantial returns over short time frames.
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