Trading Commodity CFDs on MT4
Trade a wide range of commodity CFDs using one of the most popular commodity trading platform – MT4. Commodities are one of the most heavily traded and closely-watched products in global markets. Using MT4, you can trade commodities such as:
Leverage Levels
At GO Markets, we offer different leverage based on our clients’ preference and trading ability.
Please refer to the available leverages based on the account types.
| Available Leverage | Product |
|---|---|
| 30:1 | Major currency pairs |
| 20:1 | Non-major currency pairs, gold and major equity indices |
| 10:1 | Commodities other than gold and non-major equity indices |
| 5:1 | Individual equities and any underlying assets not otherwise mentioned |
Margin Requirement
Margin Requirement is an initial deposit required to maintain open trading positions. A portion of your trading account funds will be set aside as a margin deposit and this will be dependent on your leverage setting.
To help you understand how margin requirement in forex trading works, we have prepared two examples below:
Example 1
Margin requirement for one standard contract position in EUR/USD at 1.15000 with a leverage of 1:30 is calculated as follows:
Margin = (1 * 100,000 * $1.1500) / (30) = $3,833.33
Example 2
Margin requirement for one standard contract position in EUR/JPY at 122.760 with a leverage of 1:30 is calculated as follows:
Margin = (1 * 100,000 * $122.760) / (30) = JPY$409,200
Assuming your MT4 account is denominated in USD, we will need to convert the margin requirement into USD:
Assuming the rate for USD/JPY is 109.725
Margin = $122.760 / 109.725 = $1118.79
Margin Call
It is important for traders to understand the meaning of Margin Call before they trade. Margin Call is a measure set by brokers to alert traders prior to their account funds falling below the Margin Requirement. This prevents liquidation of open positions due to insufficient Margin Requirement.
At GO Markets, Margin Call is set at 80%, therefore, if your Equity (Balance – Open Positions Profit/Loss) falls below 80% of the margin required to maintain your positions, a notification within MT4 will alert you to make an additional deposit to maintain your open positions.
Stop Out Level
After Margin Call, you should understand the meaning of Stop Out Levels. If you are unable to maintain sufficient funds in your account after hitting the Margin Call level, and your account funds depreciates to the Stop Out level, your positions will be closed automatically to prevent further losses which might put you into negative.
At GO Markets, Stop Out level is set at 50%.
Long & Short Swaps
| Symbol | Long Swaps | Short Swaps |
|---|---|---|
| USOUSD | 1.6 | -9.6 |
| UKOUSD | 32.7 | -9.6 |
| XAUUSD | -9.85 | 4.35 |
| XAGUSD | -1.28 | 0.55 |
Trading commodities gives you an easy and cost-effective way to trade one of the most liquid markets in the world. It also provides instant diversification to your trading portfolio. And because commodities are traded as Contracts for Difference (CFD), you are only trading the price movement and not the physical or underlying instrument.
Using our MT4 Genesis commodity trading platform and smart trading tools, you can track the price of Oil and other commodities as they are traded in different financial centres throughout the day. You can also set alerts on the trading platform to capture the price movements particularly around high-impact events such as crude oil inventory reporting. The Correlation Trader allows you to track the correlation between different asset classes.
- Trade with leverage –Commodities are traded on margin, so you can choose the leverage that suits you up to a maximum of 30:1*
- Competitive spreads –We have tight spreads on our full range of commodities
- Fast trade execution –We provide low latency and efficient price feeds to ensure fast trade execution
- Lower trading cost –Commodities attract a much lower cost compared to other instruments, keeping your commodity trading costs down
- Tradeable on multiple devices –Using our mobile MT4 commodity trading platform, you can trade commodities across your favourite mobile devices
- Trade long and short –You can easily trade long or short positions on commodities since you are only trading the price movements
* The effect of leverage is that both gains and losses are magnified. You should only trade if you can afford to carry these risks.
Below is the full range of commodity CFDs you can trade via our MetaTrader 4 trading platform:
| Instrument | Symbol | Spread | Lot Size |
|---|---|---|---|
| Spot Gold | XAU/USD | Variable | 100oz |
| Spot Silver | XAG/USD | Variable | 5,000oz |
| Spot WTI Crude Oil | USO/USD | Variable | 100 Barrels |
| Spot Brent Crude Oil | UKO/USD | Variable | 100 Barrels |
Commodities are usually traded in exchanges that specialise in these products, like the New York Mercantile Exchange (NYMEX) or the London Metal Exchange.
Commodity CFDs are traded using standard size lots – e.g. 1,000 barrels of crude oil.
When trading commodities with GO Markets, you are actually trading it as a CFD, which means you are only trading the price movement and not the actual commodity.
This gives you the flexibility to trade a fraction of the standard contract. So, instead of trading 1,000 barrels of oil, you can trade a smaller lot of 100 barrels. This is ideal particularly if you are just starting out in trading commodities, as you can set aside a smaller amount of your trading capital to get exposure in this liquid market.
Trading the commodity CFDs market means you can trade precious metals. Gold, silver and other metals can be traded easily through our MT4 platform. Gold and silver are two of the most commonly traded metals. When trading with MT4, gold, silver and other commodities can be traded quickly, reliably and with the right informative tools.
Trading gold and silver on the MT4 platform involves trading pre-set lot sizes. For gold, a lot size is equivalent to 100 oz, and for silver one lot is equivalent to 5,000 oz. This is a great way to take advantage of trading opportunities in this liquid market. The smaller lot sizes allow you to limit your risk and exposure and also allow you to diversify your trading portfolio.
| Instrument | Trading Hours (GMT+2) |
|---|---|
| USOUSD | Mon – Thur: 1:00 AM – 12:00 AM Fri: 1:00 AM – 11:59 PM |
| UKOUSD | Mon – Thur: 3:00 AM – 12:00 AM Fri: 3:00 AM – 11:59 PM |
| XAUUSD | Mon – Fri: 1:01 AM – 11:59 PM |
| XAGUSD | Mon – Fri: 1:01 AM – 11:59 PM |
*Note: Trading hours are subject to change without prior notice. Liquidity Providers may adjust trading schedule as necessary, depending on market conditions.