Understanding Commodities
Commodity markets can reflect physical supply, demand, inventories, transport constraints, weather and geopolitical developments. Different products can behave very differently even within the same asset class.
Many commodity instruments are based on derivatives with expiry or rollover characteristics. Trading hours, contract values and financing rules should be checked for every symbol before a position is opened.
Energy markets
Review selected crude-oil and natural-gas instruments where enabled.
Agricultural products
Availability can include selected grains and soft commodities, subject to account group.
Supply-driven volatility
Production, storage, transport and weather conditions can have a direct price impact.
Rollover awareness
Derivative-based symbols may have expiry, adjustment or rollover characteristics.
What influences this market?
Supply and inventories
Production decisions and stock levels can move prices quickly.
Weather and seasonality
Agricultural supply and energy demand can be highly seasonal.
Geopolitical developments
Sanctions, conflict and transport disruption may alter global flows.
Trading sessions
Energy and agricultural contracts can have daily maintenance breaks and exchange-specific sessions. Liquidity may change materially around inventory reports, weather events and contract rollover.
Commodity prices can gap after supply disruptions, geopolitical events or unexpected inventory data. Some products may be especially volatile and can move beyond a planned stop level.
Read the full risk disclosure