Commodity index trading

CMC Markets

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.

What commodity indices can you trade on?

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.

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.

Commodity indices details

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

InstrumentMargin rate fromMinimum spreadTrading hours
Energy Index10%2.401:00 - 22:00 (Mon to Fri)
Agricultural Index10%3.409:45 - 13:45 / 14:30 - 17:30 (Mon to Fri)
Precious Metals Index10%1.823:00 - 22:00 (Sun to Fri)

The benefits and risks of commodity indices

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.Please be aware that spread bets & 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 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

ComponentNo. of units1Weighting2 (%)
Crude Oil West Texas64,80038.42
Crude Oil Brent42,30028.75
Low Sulphur Gasoil1,5709.53
Gasoline454,0008.47
Heating Oil418,0008.25
Natural Gas243,0006.59

1Energy Index divisor: 10001.71605. Index created at a base level of 1,000 as of 29 March 2019. Initial target index value = $10 million.
2As of last rebalance date, 1 April 2019.
Energy and Agricultural Index methodology [pdf]

Agricultural Index

ComponentNo. of units1Weighting2 (%)
Soybean313,90027.71
Corn557,40020.56
Soybean Meal3,55810.84
Wheat224,50010.39
Coffee Arabica (US)679,2006.26
Soybean Oil2,073,7005.92
Sugar Raw (US)4,451,9005.60
Cotton488,9003.69
US Cocoa1353.02
Coffee Robusta1362.01
Sugar White (UK)6132.01
Oats76,2002.01

1Agricultural Index divisor: 9960.179043. Index created at a base level of 1,000 as of 29 March 2019. Initial target index value = $10 million.
2As of last rebalance date, 1 April 2019.
Energy and Agricultural Index methodology [pdf]

Precious Metals Index

ComponentNo. of units1Weighting2 (%)
Gold2,71335.00
Silver233,15235.00
Platinum1,79115.00
Palladium1,13415.00

1Precious Metals Index divisor: 10000.56564. Index created at a base level of 1,000 as of 29 March 2019. Initial target index value = $10 million.
2As of last rebalance date, 1 April 2019.
Precious Metals Index methodology [pdf]

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