English

Commodities Overview

Commodities Overview

BlackPearlFX offers the possibility to also trade Commodities on the same MT4 platform to all its clients with some of the tightest spreads in the market place.

What is a commodity

A commodity is a basic good in commerce that is interchangeable with other commodities of the same type.

Commodities in the Financial Markets 

In the Financial Markets, speculators trade in the commodities markets for the sole purpose of profiting from the volatile price movement. In this case the traders generally never intend to make or take delivery of the actual commodity when the contracts expire. In the last few years there has been an increase of the daily range and volatility in this markets that made them very tempting for the intraday speculators. The price of commodities can be affected by international events such as war, inflation, excess of supply or demand to name a few.

Commodities offered by BlackPearlFX

Metals
This category includes precious metals Gold, Silver and regular metal Copper.

Energy
This includes Brent Oil, Crude Oil and Natural Gas.

Trading Metals and Energy Commodities

Traders can buy or sell different commodities and aim to make a profit with the aim of making a profit by either buying the commodity back at a lower price or selling it at a higher price than the price at which they bought it. Trading on CFDs means that traders do not actually own the relevant commodity, but rather trade the underlying movement of the commodity in question making either a profit or a loss once the position is liquidated.

BlackPearlFX offers competitive spreads on Metals and Energy commodities. You can find all details on the Metals & Energy page. Trading on certain commodities such as gold and silver is often used as a safe haven investment and it is seen as a good option during times of economic uncertainty.

Example of a Trade in Commodity

BlackPearlFX offers the chance to trade on different commodities which are GOLD, SILVER and COPPER (METALS), UKOIL, USOIL and NaturalGAS (ENERGY).

Here is an example of a commodity trade:

Let’s assume the current price of gold is 1182.20 – 1182.36 and the trader decides that there are good chances to make a profit because he thinks the price is very low.

The trader decides to buy 1 lot (100 ounces) at 1182.36. The next day gold is trading at a level of 1190.36 – 1190.52 and the trader decides to close the trade. Gold moved exactly 8 points in the trader’s favour (from 1182.36 to 1190.36) hence the trader made a profit of $800 (1lot x 8 x 100oz = $800). However if the trader had sold 1 lot at 1182.20 and bought it back at 1190.52, the trader would have incurred a loss of 8.32 points (from 1182.20 to 1190.52) totalling a loss of $832 (1lot x 8.32 x 100oz = $832).

 

Are you interested in trading spot gold and silver? Contact our Support team either via email support@blackpearlfx.com or call our desk at the number +44 (0) 203 745 7101

 

REGULATION AND LICENCING

CFDs and Spot FX are leveraged products and carry a high degree of risk to your capital. It is possible to lose more than your initial investment so only speculate with money you can afford to lose. CFDs and Spot FX may not be suitable for all investors so please ensure you fully understand the risks involved, seeking independent advice if necessary. 

BlackPearlFX is a trading name of Black Pearl Securities Limited (Company number 08823678). Black Pearl Securities Limited is authorized and regulated by the Financial Conduct Authority, Financial Services Register Number 688456. Registered office address: 23 Austin Friars, London, EC2N 2QP. United Kingdom

Relationships listed throughout the website may be directly or indirectly established with Black Pearl Securities Limited or its trading name BlackPearlFX. The Entities listed include custodian banks, clearing partners, liquidity providers, technology providers, news & market data vendors, among others. Names and Logos of listed entities are the property of their respective owners. 

BlackPearlFX’s Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Ebury Partners UK Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 522933).

The information on this site is not directed at residents of the United States, Japan, Afghanistan, Algeria, Angola, Bosnia and Herzegovina, Cuba,Guyana, Iran, Iraq, Lao PDR, Myanmar, North Korea, Papua New Guinea, Sudan, Syria, Uganda, Yemen or any particular country outside the United Kingdom and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law and regulation.

www.blackpearlfx.com is owned and operated by Black Pearl Securities Ltd.

Website Terms and Conditions | Risk Warning Notice | Customer Terms and Conditions

REGULATION AND LICENCING

CFDs and Spot FX are leveraged products and carry a high degree of risk to your capital. It is possible to lose more than your initial investment so only speculate with money you can afford to lose. CFDs and Spot FX may not be suitable for all investors so please ensure you fully understand the risks involved, seeking independent advice if necessary. 

BlackPearlFX is a trading name of Black Pearl Securities Limited (Company number 08823678). Black Pearl Securities Limited is authorized and regulated by the Financial Conduct Authority, Financial Services Register Number 688456. Registered office address: 36 Whitefriars Street, London, EC4Y 8BQ. United Kingdom

Relationships listed throughout the website may be directly or indirectly established with Black Pearl Securities Limited or its trading name BlackPearlFX. The Entities listed include custodian banks, clearing partners, liquidity providers, technology providers, news & market data vendors, among others. Names and Logos of listed entities are the property of their respective owners. 

BlackPearlEX’s Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Ebury Partners UK Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 522933).

The information on this site is not directed at residents of the United States, Japan, Afghanistan, Algeria, Angola, Bosnia and Herzegovina, Cuba,Guyana, Iran, Iraq, Lao PDR, Myanmar, North Korea, Papua New Guinea, Sudan, Syria, Uganda, Yemen or any particular country outside the United Kingdom and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law and regulation.

www.blackpearlfx.com is owned and operated by Black Pearl Securities Ltd.

Website Terms and Conditions | Risk Warning Notice | Customer Terms and Conditions