What commodity CFDs are and how they work
A commodity CFD is a contract that tracks the price movement of a commodity, often via futures prices or spot benchmarks. You post margin rather than the full notional value, which magnifies both gains and losses. Because many commodity CFDs are priced off futures contracts, traders should understand concepts such as contract rollover, expiry-based pricing adjustments and the difference between spot and futures-based instruments. These mechanics affect holding costs and how closely a position tracks the headline commodity price over time.
- Commodity CFDs are leveraged derivatives; you never own the physical commodity.
- Futures-based CFDs may be subject to rollover adjustments that change your position value or cash balance.
- Overnight financing, spreads and any commissions all affect the real cost of holding a position.
- Contract size and tick value determine how much each price move is worth in your account currency.


