CFD Commodities

A simple alternative to Futures trading

Instead of trading on the Futures exchanges, which sometimes requires the trading prohibitive lot sizes and high collateral requirements, investors can now access leveraged commodity trading with reduced collateral through Commodity CFD.

Benefits of trading commodity CFD with Dif Broker

  • Standard margin is 10%
  • Commission free
  • Smaller lot sizes compared to futures for increased flexibility
  • Easy-to-understand single-unit pricing
  • One-click trading of oil, gold, grains, softs and other major commodities
  • Simple cash settlement in line with the underlying future
  • Easy portfolio diversification and new hedging opportunities
  • Smaller outlays, no exchange fees
  • Short selling is fully supported

CFD on commodity assets are based on the underlying futures contracts.

The benefit of trading commodities CFD is that it offers a flexible alternative to trading large lot sizes that are stipulated by the exchanges. Clients will be able to trade fractional lot sizes of the corresponding futures, normally being a minimum of 10% of the contract sizes. Additionally, the margin requirements can be lower than those of futures, which enable greater leverage possibilities. However, the cost of trading these CFD is built into the price quoted, rather than having a separate commission charge, as with the corresponding futures contracts. This means that the price quoted for the CFD on the Dif Freedom trading platform may be slightly different, than the futures price for the stated commodity.

Furthermore the charges may not be exactly pro rata. Unlike equity-based CFD, Commodities CFD have an expiry date. The contract will be closed out on a cash-settled basis, on the expiry date of the underlying future with no automatic rollover. Currently we do not support the automatic rolling of positions from one settlement to the next. Any positions still open needs to be closed on the last trading day before Expiry Date. If not done it will be automatically closed at the closing price and cash settled.

Access the world's most liquid Commodity Markets

Up to 14 Commodity CFD will be available online to trade. Each CFD is derived from an underlying futures contract but does not carry the same name or symbol as the future.

Energy Metals Soft Commodities Grains
US Crude Gold NY Coffee Corn
US Crude Silver NY Cocoa Wheat
Heating Oil US Copper NY Sugar #11 Soybeans
US Gasoline      
US Natural Gas      

Commodity CFD are denominated in smaller lots than the underlying futures contract. For example, the US Crude CFD is for 25 barrels of oil, compared with 1000 barrels traded on Nymex. Each CFD is quoted as 1 unit of the underlying contract (1 barrel) but there will be a minimum trade size (25 barrels).


CFD margin requirements are lower than those of the underlying futures contract, because of the smaller minimum lot size.


A commission is not charged but there is a spread included in the price that Dif derives for each CFD. This derivation means that whilst the CFD prices track the underlying future, they are not exactly the same.


Like futures, our commodity CFD have an expiry date and will be cash settled on the expiry date of the underlying futures contract.


The specific expiry date and time for individual Commodity CFD can be found on the trading platforms located on either the Trade or Order tickets, and the Instrument Information pages.

Trading will cease at the specific time listed in the table above for each oil contract. Clients should pay attention to when the Last Trade Day will take place as it differs from contract to contract and month to month.

Currently we do not support the automatic rolling of positions from one month to the next. Any positions still open at the close of trading on the Expiry Date will be automatically closed at the closing price and cash settled.


Limit, Market, Stop, Stop Limit and Trailing Stop orders are supported. In addition, you are able to place If-Done and One-Cancels-The-Other (OCO) orders.

Other Information

Whilst all Commodity CFD are priced in single units, often a minimum trade size will apply. However, clients are able to reduce an open position to below the minimum trade size. Should you left with such a position, then it should be closed via the Account Summary or by contacting your Account Manager.

Long Position in US Crude - Buy 100 barrels of US Crude CFD.

Day 1 – The trader is bullish and therefore wants to long US Crude CFD.
Trade Buy 100 CFD at US$59.90
Nominal value US$5,990
Margin required (10%) US$599
Day 5 – The price has risen and the trader wishes to close the position for a profit.
Trade Sell 100 CFD at US$62.20
Value of closing trade US$6,220
Profit US$230
Movement in the underlying commodity (US$62.20 - US$59.90) / US$59.90 = 3.8%

In summary the trader took advantage of the leverage that comes with Commodity CFD. The opening trade was valued at US$5,990 but the trader had to only provide a margin of 10% or US$599. The closing trade generated a profit of US$2.30 per barrel and whilst that translated to a 3.8% rise in the price of oil, the client realized a profit of US$230, representing 38.9% of the original margin.

Clients should be reminded that while trading leverage products like Commodity CFD can bring increased profitability, they can also increase a trade’s potential loss should the market move against you. For example:

Day 1 – The trader is bullish and therefore wants to long US Crude CFD at US$59.90.
Trade Buy 100 CFD at US$59.90
Nominal value US$5,990
Margin required (10%) US$599
Day 5 – The price has fallen and the trader decides to close the position at US$57.75.
Trade Sell 100 CFD at US$57.75
Value of closing trade US$5,775
Loss  US$215, representing a loss of 35.9% on the initial margin

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

72 % of retail investor accounts lose money when trading CFDs with this provider.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.