Commodities Trading
One of the key benefits of your City Index spread betting account is that we give you access to thousands of markets, which you may not have had exposure to before.
With your spread betting 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 spreads for US and UK crude oil start from 6 points.
Commodities Spread Betting Example
Let's say our US crude oil monthly futures spread bet price is 7880/7886 (sell price/buy price).
Going Long on Commodities
You think that demand for US crude oil is rising and expecting prices to rally, decide to buy (go long) £2 per point at 7886 (buy price).
You were right: Over the coming days, the price of US crude oil rises on surging demand. When prices reach 8010, you decide to cash in your profits. We are now quoting a monthly futures spread of 8010/8016. To close your trade, you now sell £2 per point at 8010.
Result: You bought at 7886 and sold at 8010, representing a 124-point movement in your favour, which at your stake size of £2 a point, nets you a tax-free profit* of £248 (8010 – 7886 x £2).
Alternative scenario: If however, you were wrong and US crude oil prices had fallen to 7762, you would net a £248 loss (7886 - 7762 x £2).
Going Short on Commodities
You think that US crude oil stockpiles are outpacing demand, and expecting prices to fall, decide to sell (go short) £2 per point at 7880 (sell price).
You were right: Over the coming days, the price of US crude oil falls on weakening demand. When prices reach 7754, you decide to cash in your profits. We are now quoting a monthly futures spread of 7748/7754. To close your trade, you now buy back £2 per point at 7754.
Result: You sold at 7880 and bought back at 7754, representing a 126-point movement in your favour, which at your stake size of £2 a point, nets you a tax-free profit of £252 (7880 – 7754 x £2).
Alternative scenario: If however, you were wrong and US crude oil prices had risen to 8006, you would net a £252 loss (8006 - 7880 x £2).
Commodities Education and Resources
Our superior trading platform is packed with resources to help you make better-informed spread betting 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 spread betting experts, enable you to learn spread betting at your own pace and from your own computer, no matter where you are. Find out more about our webinars and seminars.
Special Introductory Offer: Reduced Minimum Stake Sizes
New City Index clients are also entitled to special reduced minimum stake sizes starting from just 25 pence per point for a period of four weeks, so you can place your first spread bet with confidence. At the end of the four-week period, our normal minimum stake sizes will automatically be applied to your account. Find out more
Multi-Platform Trading 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.
* Unlike direct investment in the underlying assets, spread betting is exempt from both UK stamp duty and UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances.
Spread betting is a leveraged product and can result in losses that could quickly exceed your initial outlay, so please make sure you fully understand the risks involved.
