Commodities Trading

Both soft and hard Commodities, such as cocoa, coffee and copper, can be used as standalone trading opportunities or to complement a diversified portfolio. Capitalize on the rising and falling prices of these assets with CFDs and the best trading conditions in the industry offered by HFM.

WHY TRADE CFDs ON COMMODITIES WITH HFM

Ultra-fast execution

Trade on both rising and falling prices

Low margin requirements

Portfolio diversification

Instant access to global markets

Risk-free demo account

Commodities

Commodities Futures Contract Specifications

Swap values in margin currency		Trading Hours
Symbol	Description	Spreads as low as	Leverage (up to)	Short	Long	Monday Open	Friday Close	Break
Cocoa	US Cocoa	10.0	1:66	0.0	0.0	11:50:00	20:29:59	–
Coffee	Coffee	0.99	Floating	0.0	0.0	11:20:00	20:29:59	–
Copper	Copper	0.008	Floating	0.0	0.0	1:05:00	23:57:59	–
Cotton	US Cotton No.2	0.29	1:66	0.0	0.0	4:05:00	21:19:59	–
Sugar	Sugar #11	0.06	Floating	0.0	0.0	10:35:00	19:59:59	–

Important

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.
Server Times: Winter: GMT+2 and Summer: GMT+3 (DST) (last Sunday of March and ends last Sunday of October).
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
Margin requirement:	1.50% of Notional Value
Notional value is:	1 * 10 * 2,692 = 26,920 USD
Margin required is:	26,920 USD * 0.015 = 403.80 USD

				Swap values in margin currency		Trading Hours
Symbol	Description	Spreads as low as	Leverage (up to)	Short	Long	Monday Open	Friday Close	Break
Cocoa	US Cocoa	10.0	1:66	0.0	0.0	11:50:00	20:29:59	–
Coffee	Coffee	0.99	Floating	0.0	0.0	11:20:00	20:29:59	–
Copper	Copper	0.008	Floating	0.0	0.0	1:05:00	23:57:59	–
Cotton	US Cotton No.2	0.29	1:66	0.0	0.0	4:05:00	21:19:59	–
Sugar	Sugar #11	0.06	Floating	0.0	0.0	10:35:00	19:59:59	–

Important

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.
Server Times: Winter: GMT+2 and Summer: GMT+3 (DST) (last Sunday of March and ends last Sunday of October).
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
Margin requirement:	1.50% of Notional Value
Notional value is:	1 * 10 * 2,692 = 26,920 USD
Margin required is:	26,920 USD * 0.015 = 403.80 USD

				Swap values in margin currency		Trading Hours
Symbol	Description	Spreads as low as	Leverage (up to)	Short	Long	Monday Open	Friday Close	Break
Cocoa	US Cocoa	10.0	1:66	0.0	0.0	11:50:00	20:29:59	–
Coffee	Coffee	0.99	Floating	0.0	0.0	11:20:00	20:29:59	–
Copper	Copper	0.008	Floating	0.0	0.0	1:05:00	23:57:59	–
Cotton	US Cotton No.2	0.29	1:66	0.0	0.0	4:05:00	21:19:59	–
Sugar	Sugar #11	0.06	Floating	0.0	0.0	10:35:00	19:59:59	–

Important

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.
Server Times: Winter: GMT+2 and Summer: GMT+3 (DST) (last Sunday of March and ends last Sunday of October).
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
Margin requirement:	1.50% of Notional Value
Notional value is:	1 * 10 * 2,692 = 26,920 USD
Margin required is:	26,920 USD * 0.015 = 403.80 USD

WHAT IS COMMODITIES TRADING?

Commodities trading is the buying and selling of physical goods that are either grown, mined or extracted from the earth, such as gold, oil, coffee, sugar, and many others. These goods are used in the production of other goods and services, and as such, their prices can be influenced by a variety of factors such as supply and demand, weather conditions, geopolitical events, and more.

Investors and traders can participate in commodities trading through a variety of financial instruments, including futures contracts.

These instruments allow traders to trade on the future price movements of commodities, hedge against price risk and trade with leverage.

At HFM, you can trade CFDs on soft and hard commodities with leverage and ultra-fast execution.

You can choose between the MT4 and MT5 platforms and the HFM App to start trading CFDs on Commodities.

CHOOSE YOUR CFD FOREX TRADING PLATFORM

Access a wide range of desktop, web and mobile Trading Platforms including the HFM platform, MetaTrader 4 and MetaTrader 5.

MetaTrader 4

Enter and exit trades at specific price levels and manage their risk effectively.

MetaTrader 5

Select your preferred currency pairs and use the platform's advanced trading tools to open, manage, and close your positions.

Frequently asked questions

How do I get started with Commodity trading?

Firstly, learn about the different types of commodities that are traded and their market dynamics. This can include reading industry reports, following commodity prices, and understanding supply and demand factors. Then, open an HFM Live or Demo trading account and choose your platform, strategy and trading opportunity. Open your position and monitor.

What moves a Commodity’s price?

The price of commodities is influenced by a wide range of factors, including:

Supply and Demand: The basic principle of supply and demand plays a significant role in determining commodity prices. If the supply of a commodity exceeds demand, prices may fall, whereas if demand exceeds supply, prices may rise.
Geopolitical events: Geopolitical events, such as wars, natural disasters, and political instability can disrupt the supply of commodities and impact prices. For example, political unrest in oil-producing countries can lead to disruptions in oil supply, causing prices to rise.
Weather conditions: Weather conditions such as droughts, floods, and hurricanes can impact the production of agricultural commodities, such as wheat and corn, and impact prices.
Global economic conditions: The health of the global economy can impact the demand for commodities. During periods of economic growth, demand for commodities such as industrial metals and energy can increase, while during economic downturns, demand may decrease.
Currency exchange rates: Commodity prices are often denominated in U.S. dollars, so changes in exchange rates can impact prices for buyers using other currencies.
Government policies: Government policies such as trade tariffs, subsidies, and regulations can impact the production, consumption, and pricing of commodities.
Seasonal factors: Some commodities, such as natural gas and heating oil, have seasonal demand patterns that can impact prices.

What are the most traded Commodities?

The most traded commodities in the world include:

Crude Oil

Gold

Natural Gas

Corn

Copper

How much do I need to start trading Commodities?

At HFM, we offer multiple account types to suit the specific requirements of different traders. Whatever your trading strategy, level of funding or appetite for risk, there is an account to match your needs. Please, check our Accounts Page for more information.