COMMODITY CFD LOT SIZES ARE A FRACTION OF THE FUTURE
Commodity CFDs are denominated in smaller lots than the underlying future. For example, the US Crude CFD is 25 barrels of oil, rather than 1,000 barrels. Each CFD is quoted as 1 unit of the underlying contract (e.g., 1 barrel), but there will be a minimum trade size.
GREATER LEVERAGE COMPARED TO THE FUTURE
CFD margin requirements are lower than the underlying future, offering more exposure for less. Saxo Bank’s half-margins also apply to Commodity CFDs, lowering margin requirements even further for the first €300,000 (or equivalent) of collateral required on your account.
NO COMMISSIONS ON COMMODITY CFDs
A commission is not charged, but there is a spread included in the price Saxo Bank derives for each CFD. This derivation means that whilst the CFD prices track the underlying future they are not exactly the same.
COMMODITY CFDs EXPIRE EACH MONTH
Like futures, Saxo Bank’s Commodity CFDs will expire each month and will be cash settled on the expiry date of the underlying future. Front month (current contract) and back month (following contract) will be offered to enable clients to manually roll positions from one contract to the next.
CONTRACT DETAILS AND SPECIFICATIONS
Saxo Commodity CFD Trading Conditions
EXPIRY
The specific expiry date and time for individual Commodity CFDs can be found in the trading platforms on either the Trade or Order tickets plus the Instrument Information pages.
Trading will cease at the specified time listed in the table above for each contract. Clients should pay attention to when the Last Trade Day will take place as it differs 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 set by Saxo Bank and cash settled.
SUPPORTED ORDER TYPES
Limit, Market, Stop, Stop Limit and Trailing Stop orders are supported. In addition you are able to place If-Done and One-Cancels-Other (OCO) orders.