4xHub

Commodities

4Xhub offers a flexible and easy way to gain exposure to some of the world’s most popular commodities including energies and metals all from within your MetaTrader 4 trading platform.

Commodity markets are attractive to speculators as they are susceptible to dramatic changes in supply and demand.

Precious Metals

We allow trading the spot price for metals including Gold or Silver against the US Dollar as a currency pair on 1:100 leverage.

Commodities Facts

  • 6 Commodities to trade

  • Energy and Metals

  • Leverage up to 1:100

  • Competitive Pricing

  • Deep liquidity

commodities

How does Commodities trading work?

Commodities cover energy, agriculture and metals products. These products are traded in futures markets and derive their value from demand and supply characteristics.

Supply characteristics include the weather in the case of agriculture and costs of extraction in the case of mining and energies.

Demand for commodities tends to be characterised by broader conditions such as economic cycles and population growth. Commodities can be traded as stand alone products or in pairs.

Metals and energies are traded against major currencies whereas agriculture futures contracts are traded as stand-alone contracts.

Commodity trading example

The gross profit on your trade is calculated as follows:

Opening Price

$435.25 * 100 contracts * 4 = USD $174,100

Closing Price

$460 * 100 contracts * 4 = USD $184,000

Gross Profit on Trade

USD $184,000 - $174,100 = $9,900

Opening the Position

Wheat_N7 is currently trading at 434.00/435.25 and you are expecting Australia’s East Coast crops to be affected by adverse weather patterns over the coming year which will result in lower than average crop yields.

You buy 100 contracts of Wheat (4 bushels per contract) at 435.25 which equals USD $174,100 (435.25 * 100 * 4).(4 bushels per contract) at 435.25 which equals USD $174,100 (435.25 * 100 * 4).

Closing the Position

Your research surrounding weather conditions turns out to be correct. Lower crop yields this year have caused Wheat prices to increase to 460.00/462.15. You exit your position by selling your contracts at 460.

Spread

Commodities

SYMBOL

DESCRIPTION

MIN

AVG

XAUUSD Gold vs United States Dollar 0.1 0.2
XPTUSD Platinum vs United States Dollar 4 4.5
XAGUSD Silver vs United States Dollar 0.01 0.015
UKOUSD Brent Crude Oil vs United States Dollar 2.5 3
USOUSD WTI Crude Oil vs US Dollar 3 3.5
XNGUSD Natural Gas vs United State Dollar 0.5 1

* Subject to change based on market condition