Trading Commodities Via CFDs And Futures

Most traders access commodity markets without taking physical delivery of the underlying goods, using instruments such as futures contracts or CFDs (contracts for difference) that track the price instead.

Futures Contracts

A futures contract is a standardized agreement to buy or sell a commodity at a set price on a future date. Futures have defined expiry dates, and traders who do not want physical delivery typically close or roll their position before expiry.

CFDs

A CFD is an agreement between a trader and a broker to exchange the difference in an asset's price between the opening and closing of a trade, without any physical contract or standardized expiry in most cases. CFDs often make it easier to take smaller or more flexible position sizes than a standardized futures contract allows.