How commodity CFDs work
A commodity CFD mirrors the price of an underlying commodity market, often referenced to spot prices or futures contracts. When a CFD is based on futures, the pricing can reflect rollovers as the reference contract expires, which affects the cost of holding positions across those dates. Positions held overnight generally incur financing charges, and commodity markets can move sharply on supply news, inventory reports, or geopolitical events, which makes leverage particularly consequential in this asset class.
- Check whether a given commodity CFD references spot prices or a futures contract, since this affects rollover behavior.
- Overnight financing applies to leveraged positions and compounds over longer holding periods.
- Commodity prices can gap on scheduled reports and unscheduled events, increasing slippage and stop-out risk.


