What are Forex Commodities
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Trading & Products

Commodities

GKFX offers our clients commodity trading services from over a hundred global markets

Commodities Example

We will use gold, GOLDSB, as an example of how to trade commodities on a Spread betting account. 
First determine the standard lot size for GOLDSB. If you do not know the standard lot size you can look it up on our Market Information Sheets.

The standard lot size for GOLDSB on a Spread Betting accounts is £1 per 0.1.
 
The price of GOLDSB is measured in movements of 0.1. Since a tick is a unit used to measure the smallest possible price movement a product can make and since 0.1 is the smallest amount GOLDSB can move up or down we will refer to a movement of 0.1 in this example as a tick.
 
With GKFX you can trade from as little as 10 pence per tick. To trade 10 pence per tick enter 0.10 as your lot size. This is 0.10 x the lot size of £1 per tick, which is £0.10 or 10 pence per tick.
 
If you bought gold with a lot size of £0.10 you would have made £0.10 for every tick the price of GOLDSB went up.
 
If you sold GOLDSB with a lot size of £0.10 you would have made £0.10 for every tick the price of GOLDSB went down.
 
If you bought GOLDSB at $1200.0 and the price moved up 5 ticks to $1200.5 you would have made a profit of 50 pence because £0.10 per tick x 5 ticks = £0.50, or 50 pence.
 
If you sold GOLDSB at $1200.0 and the price moved down 5 ticks to $1199.5 you would have made a profit of 50 pence because £0.10 per tick x 5 ticks = £0.50, or 50 pence.
 
Alternatively if the prices in the examples moved in the opposite directions you would have lost the amounts shown above.
 
On Spread Betting accounts your profit is always in GBP.

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Our products are traded on margin and carry a high degree of risk. Losses can exceed your initial deposit.