Spread betting on commodities
Commodities — gold, oil, natural gas, coffee, copper — offer diversification from equities and some of the most dramatic trends in any market. They also have quirks that catch beginners.
How it works
You stake per point on the commodity's price. FCA retail margins are 5% for gold and 10% for most other commodities. Pricing is usually based on futures contracts, which means two things to understand: expiry (quarterly bets roll or expire) and contango/backwardation (the futures curve can drift against a long-held position even when the spot headline barely moves).
What to watch
Oil reacts to OPEC decisions, inventories and geopolitics; gold to real interest rates and the dollar; agricultural markets to weather. Volatility is lumpy — quiet weeks punctuated by violent sessions — so stakes that feel comfortable in calm markets can be oversized when the move arrives.