Speculating on the future price of a physical good (i.e. gold, oil, cotton, etc.) can be done by trading on commodities. Unlike the Forex market, commodity trading itself is carried out on structured exchanges where a relatively small number of buyers and sellers negotiate prices.

When spread betting or trading on commodity CFDs, you are actually trading on the underlying market price using a leveraged-based derivative product. Leverage means that you can trade on larger positions than you would be able to if you were obliged to purchase the commodity. Leverage increases profits and losses.

Derivatives mean you can trade on the price without the need to ever take delivery of the commodity – which enables virtually anyone to trade on commodities the only requirement being that you have access to a phone or computer.

At PremiumFrx you can trade on commodity futures and commodities without any expiry points.