Commodities
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COMMODITY TRADING
Trade your opinion of the global commodity market with products such as gold, oil, natural gas and copper.
Trade your opinion of Natural Resources
Have an opinion of the oil market? Want to speculate on gold? With VIG Investment, you can dive deeper into a variety of natural resources. Like all VIG products, you can trade commodities as a CFD.
Why Trade Commodities with VIG Investment?
Underlying Markets
With VIG Investment, you can bet on the price movement of metals, oil and gas, similar to forex. All you need to know is the symbol for the product you want to trade and the contract size.
SYMBOL | UNDERLYING MARKET | AVERAGE SPREAD | EXPIRATION |
NGAS | Natural Gas Future | 0.01 | February 22, 2021 |
UKOil | Brent Crude Future | 0.04 | February 25, 2021 |
UKOilSpot | Brent Crude Future SPOT | 0.04 | None |
USOil | WTI Light Sweet Crude Oil Future | 0.04 | February 19, 2021 |
USOilSpot | WTI Light Sweet Crude Oil Future SPOT | 0.04 | None |
Copper | Copper Future | 0.003 | February 25, 2021 |
XAG/USD | Spot Silver | 0.05 | None |
XAU/USD | Spot Gold | 0.41 | None |
CORNF | Corn Future | 0.77 | February 25, 2021 |
SOYF | Soy Future | 0.77 | February 25, 2021 |
WHEATF | Wheat Future | 0.79 | February 25, 2021 |
UKOIL & UKOILSPOT BRENT CRUDE
Brent Crude is a trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. Brent Crude is sourced from the North Sea, and comprises Brent Blend, Forties Blend, Oseberg and Ekofisk crudes (also known as the BFOE Quotation). The index represents the average price of trading in the 21-day BFOE market in the relevant delivery month as reported and confirmed by the industry media. Only published cargo size (600,000 barrels [95,000 m3]) trades and assessments are taken into consideration.
NGAS – NATURAL GAS (HENRY HUB)
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
INSTRUMENT | SPREAD |
---|---|
NGAS | 0.01 |
UKOil | 0.04 |
UKOilSpot | 0.04 |
USOil | 0.04 |
USOilSpot | 0.04 |
INSTRUMENT | SPREAD |
---|---|
Copper | 0.003 |
XAG/USD | 0.05 |
XAU/USD | 0.41 |
INSTRUMENT | SPREAD |
---|---|
CORNF | 0.77 |
SOYF | 0.77 |
WHEATF | 0.79 |
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: