Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Commodity index trading

Spread bet or trade CFDs on baskets of commodities with our Energy Index, Agricultural Index and Precious Metals Index. These indices offer a unique, cost-effective way to trade on the wider commodity market, giving you exposure to multiple commodities in one trade. You can trade both commodities and indices at spot price or through futures and forward contracts.

CMC Markets

Major commodity indices to trade

Our three commodity indices each represent a different sector of the commodity market.

Energy Index

The Energy Index is designed to give an indication of how the energy sector is performing. Its constituent commodities are Heating Oil, Natural Gas, Crude Oil West Texas, Crude Oil Brent, Gasoline and Low Sulphur Gasoil. Read more about oil trading here.

Agricultural Index

 The Agricultural Index contains Soybean, Corn, Soybean Meal, Wheat, Coffee Arabica, Soybean Oil, Sugar Raw, Cotton, US Cocoa, Coffee Robusta, Sugar White and Oats, covering a broad spectrum of the soft commodities sector.

Precious Metals Index

The Precious Metals Index groups together several precious metals so you can get exposure to the sector as a whole. It consists of Gold, Silver, Platinum and Palladium. Gold is one of the most commonly traded commodities throughout the world; read more about gold trading here.

Commodity indices details

View the spreads, margin rates and trading hours for our commodity indices in the table below.

Margin rate from Minimum spread Trading hours
Energy Index 10% 2.4 01:00 - 22:00 (Mon to Fri)
Agricultural Index 10% 3.4 09:45 - 13:45 / 14:30 - 17:30
(Mon to Fri)
Precious Metals Index 10% 1.8 23:00 - 22:00 (Sun to Fri)

Commodity index trading: benefits and risks

There are several benefits to commodity index trading as opposed to trading individual commodities.

Firstly, it can be a more cost-effective and efficient way of trading the market, as it allows you to take a view on a commodity sector as a whole, without having to open a position on each individual commodity. Likewise, this can be a good way for you to diversify your portfolio.

Commodity index trading can also be a good way to spread your risk, as you are exposed to a wider range of instruments as opposed to just one commodity. It's important to be aware that spread bets and CFDs are high-risk, speculative products. High volatility combined with leverage could lead to significant losses.

As with any leveraged product, both profits and losses will be based on the full value of your position. While you could make a profit if the market moves in your favour, you could just as easily make significant losses if the trade moves against you and you don’t have adequate risk management in place. 

How do commodity indices work?

Our commodity indices group together individual commodities to make a commodities ‘basket’. The indices track the underlying prices of the commodities within that index. If the individual commodity prices in that index increase, then the value of the index will go up. Conversely, if the individual commodity prices decrease, then the value of that index will fall.

How our commodity indices are weighted

For the Energy Index and Agricultural Index, the components will be weighted according to the average daily trade value of the nearest six futures contracts where available for the 12 months preceding the index launch date, which in turn will be based on the initial index value of $10 million.

For the Precious Metals index, Gold and Silver will be split equally to collectively make up 70% of the index weight. The remaining two components, Platinum and Palladium, will also be split equally and collectively make up 30% of the index weight.

Energy Index

Component No. of units1
Weighting2 (%)
Crude Oil West Texas 64,800 36.80
Crude Oil Brent 42,300 26.85
Low Sulphur Gasoil 1,570 10.73
Gasoline 454,000 6.79
Heating Oil 418,000 9.79
Natural Gas 243,000 9.05

1Energy Index divisor: 10004.62042. Index created at a base level of 1,000 as of 29 March 2019. Initial target index value = $10 million
2As of last review date, 20 March 2020
Energy and Agricultural Index methodology [pdf]

Agricultural Index

Component No. of units1
Weighting2 (%)
Soybean 312,600 26.93
Corn 555,200 19.50
Soybean Meal 3,543 11.28
Wheat 223,600 12.32
Coffee Arabica (US) 676,400 7.69
Soybean Oil 2,065,300 5.39
Sugar Raw (US) 4,433,800 4.90
Cotton 487,000 2.76
US Cocoa 135 3.05
Coffee Robusta 164 2.00
Sugar White (UK) 611 2.14
Oats 75,900 2.05

1Agricultural Index divisor: 9954.519228. Index created at a base level of 1,000 as of 29 March 2019. Initial target index value = $10 million
2As of last review date, 20 March 2020
​Energy and Agricultural Index methodology [pdf]

Precious Metals Index

Component No. of units1
Weighting2 (%)
Gold 2,288 35.00
Silver 277,712 35.00
Platinum 2,450 15.00
Palladium 938 15.00

1Precious Metals Index divisor: 9988.78111. Index created at a base level of 1,000 as of 29 March 2019. Initial target index value = $10 million
2As of last review date, 20 March 2020
Precious Metals Index methodology [pdf]

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CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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