Commodities

NGAS is the pricing point for natural gas futures contracts on the New York Mercantile Exchange (NYMEX) and the OTC swaps traded on Intercontinental Exchange (ICE). Spot and future prices set at Henry Hub are denominated in $/mmbtu (millions of British thermal units) and are generally seen to be the primary price set for the North American natural gas market. North American unregulated wellhead and burner tip natural gas prices are closely correlated to those set at Henry Hub.

COPPER

COMEX Copper is widely considered as one of the key cyclical commodities, given its extensive usage in construction, infrastructure and an array of equipment manufacturing. The biggest end-use is for the production of cables, wiring and electrical goods because of its excellent electricity conducting properties. The construction sector is the second largest user of copper, for plumbing, HVAC and building wiring applications. Although found in abundance and widely extracted as well as recycled, the copper value chain is quite capital intensive. This makes the market susceptible to supply-side constraints, and therefore, volatile price fluctuations.

XAU/USD – GOLD

Gold is traded in the spot market, and the gold spot price is quoted as US dollar per troy ounce. Since 1919, the most common benchmark for the price of gold has been the London gold fixing, a twice-daily telephone meeting of representatives from five bullion-trading firms of the London bullion market. Gold is traded continuously throughout the world based on the intra-day spot price, derived from over-the-counter gold-trading markets around the world (code XAU).

XAU/USD – GOLD

Gold is traded in the spot market, and the gold spot price is quoted as US dollar per troy ounce. Since 1919, the most common benchmark for the price of gold has been the London gold fixing, a twice-daily telephone meeting of representatives from five bullion-trading firms of the London bullion market. Gold is traded continuously throughout the world based on the intra-day spot price, derived from over-the-counter gold-trading markets around the world (code XAU).

Commodity Trading Details

Because the market is always moving, you can find up-to-date info for each product on your trading platform

• SPREAD COSTS

  With all VIG accounts, you pay only the spread to trade commodities. Plus, with our decimalized pricing, you see smaller price movements, giving you more accuracy on USOil, UKOil and NGAS.

• MARGIN REQUIREMENTS

  Trading on margin gives you increased access to the market. Margin requirements vary by instrument. Find up-to-date margin requirements on your platform.

• FINANCING COSTS

  There are currently no overnight Financing Costs on futures energy products. USOilSpot, UKOilSpot Gold and Silver, however, are spot products, so financing charges apply if you hold your position past 5:00 PM ET.

• TRADING HOURS

  With VIG Investment's energy products, your trading hours are based on the underlying market—just like your prices. You can open and close trades during the week, before the weekend closing. VIG Investment's metal products trade 24 hours a day, five days a week, with a one-hour break each day.

• EXPIRATION

  Oil and Gas products, that are not spot, expire periodically. Oil and gas contracts expire monthly, typically a day before First Notice or when the underlying market contracts expire. This means you may want to manage your positions before the contract expires and your positions are automatically closed.

Commodity Pricing

Our goal is to keep your commodity pricing as low as possible. With competitive average spreads, you can keep your transactions cost low as you speculate on oil, natural gas and more.

AVERAGE SPREAD COSTS

When you trade with VIG Investment, your spread costs are automatically calculated on your platform, so you see real-time spreads and pip costs when you trade. To calculate the trading cost in the currency of your account:

Spread x Pip Cost x Number of Contracts = Total Transaction Cost