Commodities
Benefit from fast order execution and tight spreads by trading Commodities CFDs
Get access to CFDs on key commodities: coffee, cocoa, corn, and wheat. Enjoy tight spreads and fast trade execution.
Gain a unique commodity trading experience on our platform: a wide range of instruments, competitive spreads, and fast execution.
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User-Friendly Interface
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Advanced Charting
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Risk Management Tools
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Multi-window Mode
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Multiple Order Types
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What Is the
Commodities Market?
The commodities market is a diverse and complex financial segment that includes a wide range of assets: metals, energy resources, agricultural products, and soft commodities. Soft commodities are cultivated resources such as coffee, cocoa, cotton, sugar, and soybeans. Trading in this market allows traders to buy and sell contracts for these assets, earning from price fluctuations.
As with the currency market, commodities trading is conducted through various financial instruments: futures, options, and Contracts for Difference (CFDs). For retail traders, the CFD market is particularly convenient, as it allows them to buy and sell contracts without owning the underlying commodity.
Pricing in the CFD market is largely determined by quotes provided by major international banks through electronic trading systems, with the spot market serving as a key benchmark. This results in some price differences across different platforms.
The value of commodities depends on many factors: supply and demand, geopolitical situations, economic indicators, and weather conditions. For example, coffee prices are directly influenced by the climate in Brazil — the largest producer of this commodity — while demand for soybeans may increase alongside the rising popularity of plant‑based diets.
In commodities trading, prices are quoted in US dollars per unit of the commodity. For example, the price of cocoa may be quoted as $2,400 per tonne. Traders can go long if they believe the price will rise or go short if they believe the price will fall. The profit or loss from the trade is determined by the difference in price between the opening and closing of the trade.
The unit of measurement used in commodities trading is different for each commodity. For soft commodities, the unit of measurement is usually in tonnes, bushels, or pounds. Each commodity has a specific tick size, which refers to the minimum price movement. For example, the tick size for cocoa is $1 per tonne.
Just like in forex trading, the spread is an important factor in commodities trading. The spread is the difference between the bid and ask price and is determined by market conditions, volatility, and liquidity. At XETRD, we offer tight spreads on soft commodities CFDs, allowing traders to trade with lower costs.