commoditiess

Commodities market as known to all has a potential economic impact on the people of nation and the nation in itself. Trade and commerce first erupted from the bed of human civilizations through consumerism that rooted from commodities and the idea of exchange. In the world of trading, commodities are also invested upon as stocks and securities.

We, Sumo Forex, make commodity trading as easy as buying merchandises from the market. Through us you can use the MetaTrader 4 application to invest in all kinds of commodities open for investment. We ensure that you get the right range of exposure to access the basket of commodities right through your Smartphone or any Internet enabled device.

Trading Commodities: The Two Staple Classifications

Commodities in the investment market have two plain slots or categories. Traders have to opt between these two for their investment. Here, take a look:

  • Energy: That includes oil mostly, like, crude oil, natural gas, gasoline, heating oil, etc.
  • Metal: All heavy and light metals that are sold for a price are enlisted under this, sold, platinum, silver and copper being some.

 

The commodity market has very recently piqued the attention of the speculators who find it potentially attractive for investment. The commodity market in particular is susceptible to radical alterations at this moment. With the demand and supply in a discordant see-saw, and innovation disrupting the subsections of the market, the scenario is rapidly changing. One advantage commodity trading has over other forms of investment is that there is no commission charged like in indices trading. Hence, regardless of the volume of trading and the frequency of the same, your transactions will not be subjected to any penalty price or commission charge. This frees up a part of the working capital.

Commodities Spreads – CFDs

CommodityReferenceSpread
BrentSpot Brent Crude Oil4
WTISpot WTI Light Crude Oil 0.04

Metals – Gold and Silver

PairStandard AccountMetaTrader 4True ECN AccountMetaTrader 4ECN AccountcTrader
MinAvgMinAvgMinAvg
XAG/EUR3.23.32.22.32.22.3
XAG/USD1.92.50.91.50.91.5
XAU/EUR424332333233
XAU/USD303320232023

Sumo Forex ensures margin rate trading even for popular high value energy contracts like WTI oil and Brent crude CFDs. Through us, they are all available at 100:1, which is a nominal rate compared to what other brokers will bring to you. As for metals, we allow you to trade in metals like gold and silver against currency pairs like Euro and USDs. We offer average account leverages of 100:1.

Commodities based on CFD are offered by Sumo Forex through MetaTrader 4 for computers, iPhones and Android.

An Example of Oil/ Energy Trading

Supposing that Brent Crude Oil stands at 100.50/100.54, you wish to buy 2 contracts with foreseeable future of a price spike up. Each contract in this case adds up to 100 barrels of oil, with no commission attached to it. A week later, when a spike in the price is monitored to about 110.70/110.74, you can choose to sell it off and earn yourself a good profit. Go ahead and close your present position by choosing to sell off your share of CFDs at 110.70. The gross profit made from the trade can be calculated by the standard scheme.

Taipan OIL Trade Example 
Opening Price100.54
Closing Price110.74
Difference10.16
Gross Profit on Trade2 contracts x 100 barrels x US $10.16 = US $2032

We are aware of the financial adjustments and so we can calculate the net profit from the trading amounts for you.

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