One of the key benefits of your City Index CFD trading account is that we give you access to thousands of markets, which you may not have had exposure to before.
With your CFD trading account, you can now gain exposure to a range of commodities including US and UK crude oil, cocoa, coffee, sugar, pork bellies, wheat and soybeans. Our CFD spreads for US and UK crude oil start from 6 points.
Commodities CFD Trading Example
Let's say our US crude oil CFD price is 78.80/78.86 (sell price/buy price). US crude oil bet per is 0.01.
Going Long
You think that demand for US crude oil is rising, and expecting prices to rally, decide to buy (go long) 2 CFDs at 78.86 (buy price).
You were right: Over the coming days, the price of US crude oil rises on surging demand. When prices reach 80.10, you decide to cash in your profits. We are now quoting a US crude oil CFD price of 80.10/80.16. To close your trade, you now sell 2 CFDs at 80.10.
Result: You bought at 78.86 and sold at 80.10, representing a 124-point movement in your favour, which at your trade size of 2 CFDs nets you a profit of $248 (80.10 – 78.86 x 2 CFDs).
Alternative scenario: If however, you were wrong and US crude oil prices had fallen to 77.62, you would net a $248 loss (78.86 - 77.62 x 2 CFDs).
Going Short
You think that US crude oil stock piles are outpacing demand, and expecting prices to fall, decide to sell (go short) 2 CFDs at 78.80 (sell price).
You were right: Over the coming days, the price of US crude oil falls on weakening demand. When prices reach 77.54, you decide to cash in your profits. We are now quoting a US crude oil CFD price of 77.48/77.54. To close your trade, you now buy back 2 CFDs at 77.54.
Result: You sold at 78.80 and bought back at 77.54, which represents a 126-point movement in your favour, which at your trade size of 2 CFDs, nets you a profit* of $252 (78.80 – 77.54 x 2 CFDs) (note US crude oil bet per is 0.01).
Alternative scenario: If however, you were wrong and US crude oil prices had risen to 80.06, you would net a $252 loss (80.06 - 78.80 x 2 CFDs).
Education and Resources
Our superior trading platform is packed with resources to help you make better-informed CFD trading decisions. Our resources include live news feeds from Dow Jones Newswires and a charting package that is available free of cost to all City Index trading account holders.
Our specialised webinars, held by our team of trading experts, enable you to learn trading at your own pace and from your own computer, no matter where you are. Find out more about our webinars and seminars.
Multi-Platform Access
Our range of trading platforms enable you to trade securely and at any time of the day. Our secure and easy-to-use online trading platform makes it possible for you to spread bet and trade CFDs from the same platform while City Trading™ our cutting-edge iPhone™ Trading App enables you to trade from wherever you are and at any time of the day.
