Commodities trading

To work out how much margin you need to trade a commodity market, you divide the notional value of your position by its margin factor. Say, for example, that you want to open an oil position worth $5000 and oil has a margin factor of 20%. You’d need (20% of $5000) $1000 as margin.

How you calculate the notional value of your trade depends on how you’re trading the commodity. With CFDs, it’s the number of contracts you’re trading multiplied by the value of each individual contract.

Learn more about how to trade commodities.

Commodity CFDs are leveraged products and involve significant risk. Leverage can amplify both profits and losses, and CFD trading may not be suitable for all investors. Before trading, it is important to understand the risks and consider whether the product is appropriate for your objectives, financial situation and needs. Learn more about the risks of CFD trading.

FOREX.com provides access to a range of markets, including commodity CFDs, index CFDs, share CFDs and forex CFDs, through a single trading platform. 

Clients who are considering CFD trading can access educational resources and a demo account to learn more about how these products work before making any trading decisions.

To get started, open your trading account.

Commodity CFD trading involves significant risk and may not be suitable for all investors, particularly those with limited trading experience. Before trading, it is important to understand how CFDs work, including the impact of leverage, margin requirements, and the potential for losses.

If you are new to trading, consider building your knowledge through the FOREX.com Academy and practising in a demo account before deciding whether CFD trading is appropriate for you.

A FOREX.com demo account allows you to explore a range of markets, including commodities, using virtual funds in a simulated trading environment. This can help you become familiar with trading features and market movements without risking real capital.