Spread betting commodities

As a full time trader myself who specialises in both commodities and forex, spread betting commodities is one of my favourite markets, and in particular I prefer to trade in both oil and gold. Indeed these are markets that I both trade in and write on regularly, and you can follow my daily analysis and forecasts in the links section of the site. All the major spread betting companies will offer a variety of markets for spread betting in commodities, including gold, silver, platinum, copper and various oil co.ntracts including Brent, and US light crude. Increasingly many of the companies are now starting to offering spread betting in the soft commodities such as cocoa, coffee, sugar, cotton and wheat, and these markets are now starting to increase in popularity.

Trading in commodities, whether spread betting, trading in futures, or spot market trading, your ultimate success will be dictated by the amount of research, study, and time that you devote to your understanding the markets you are trading. This is perhaps more true than in any other market, and the reason for this is simple. Commodities, and the relationship between supply and demand which ultimately govern prices, are perhaps the only tradable instrument which are influenced by the weather, which can and does affect the price of the underlying commodity. In addition of course, soft commodities are also subject to economic upheaval, trade wars, and political uncertainity, with prices often driven by local rather then world events. As such you will need to become an expert in your field in order to be successful spread betting in soft commodities.

Crude oil of course, is in a field of it’s own, and whilst we all know that ultimately the world’s oil resource will eventually run out in the meantime the price of oil is dictated by world economic events, short term fundamental news, and the speculators who dominate the oil futures markets. As with any market, you will need to understand all the various oil contracts, and in particular the interrelationship between Brent Crude and the US light contracts which are widely quoted on the spread betting platforms. My personal preference for spread betting in oil, is to trade using a hedging strategy between the various contracts, going long on one contract and short on another, with any profit being generated from an opening developing between the two contracts. You can find further information on my financial spread betting strategies by following the link here to another of my financial spread betting sites.

Another of my favourite commodities for trading and also spread betting is of course gold, and indeed this is where spread betting has its’ emotional roots with IG index, the first spread betting market ever!! Gold is a unique commodity, not simple because of it’s inherent value which we all love, but also for two other unique characteristics. First, it is the only commodity whose annual stockpile increases each year, with virtually none being consumed or used. Secondly, it offers investors a unique safe haven, and when the equity markets are risk averse, gold usually benefits as it seen as the ultimate preserver of wealth. When markets are in turmoil gold will benefit with a consequent rise in price. As a gold analyst I watch this market daily, and if you would like to follow my regular market forecasts for spot gold, then simply follow the link here. I hope you find this analysis ( along with the others I write for oil and silver) useful in spread betting commodities,