Trading Commodities CFD Trading Australia
Trading Commodities CFD Trading Australia
Contracts for Difference can be used not just for stockmarket trading, but also trading forex and trading commodities markets, and one of the most liquid and exciting markets is crude oil and natural gas. CFDs are usually modelled in the same way as futures contracts, and consequently there are several contracts from which to choose in each category.
Within each market, several expiration months are quoted. The difference in prices between the various contracts reflects the cost of carry and other seasonal factors as it would for all commodities.
What this means is that you do not pay financing interest on these CFDs, because all positions are rolled over into expiry and the contract values already price in the cost of carry.
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