Trading Commodity Futures on Plus500 (LON:PLUSP)

Commodity futures are where the futures market began, and they remain the clearest example of contracts tied to something physical. A commodity future is an agreement to buy or sell a specified quantity of a physical good at a predetermined price on a future date, which is why contract sizes are expressed in barrels, troy ounces or bushels rather than in dollars per point. Futures trading involves the risk of loss and is not suitable for every investor. This guide explains how commodity contracts are structured, which energy, metals and agricultural contracts are available on the Plus500 platform, and what drives each category.

TL;DR

• Commodity futures specify a quantity of a physical good, so contract size is expressed in physical units.
• Plus500 lists energy, metals and agricultural contracts in standard, mini and micro sizes.
• Each category has distinct drivers: inventories and production for energy, real yields and the dollar for metals, weather and harvests for agriculture.
• Most traders close or roll positions before expiration rather than holding toward delivery.
• Demo mode covers the same contracts with real-time quotes and unlimited virtual funds.

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How Is a Commodity Future Structured?

A commodity futures contract specifies the quantity and quality of the underlying good, the delivery month, and the price agreed today for that future date. Contract size is therefore a physical quantity.

Based on CME Group (NASDAQ:CME) contract specifications, Crude Oil represents 1,000 barrels, with a minimum price move of $0.01 equal to $10 per contract. Micro WTI Crude Oil represents 100 barrels, where the same $0.01 move equals $1. Gold represents 100 troy ounces, with a $0.10 move equal to $10, while Micro Gold represents 10 troy ounces, where the same move equals $1.

Understanding the physical unit is what makes a price quote meaningful, because the same headline price move produces very different dollar outcomes across contract sizes.

Which Energy Contracts Are Available?

Energy is the most actively followed commodity category, and the platform lists it across several sizes.

• Crude Oil, E-mini Crude Oil and Micro WTI Crude Oil
• Brent Crude Oil
• Natural Gas, E-mini Natural Gas and Micro Natural Gas
• Heating Oil
• RBOB Gasoline

Energy prices respond to inventory data, production and output decisions, refinery utilization, seasonal demand patterns and geopolitical developments affecting supply routes.

Which Metals Contracts Are Available?

Metals divide into precious metals, followed largely for monetary and store-of-value reasons, and industrial metals, followed for manufacturing demand.

Precious metals respond to real interest rates, the US dollar, central bank activity and risk sentiment. Copper is more closely tied to construction and manufacturing demand, which is why it is often discussed as an indicator of industrial activity.

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 Which Agricultural Contracts Are Available?

Agricultural futures follow production cycles, so their calendar is shaped by planting, growing and harvest periods.

• Grains: Corn, Micro Corn, Wheat, Micro Wheat, KC HRW Wheat
• Oilseeds and products: Soybean, Micro Soybean, Soybean Meal, Micro Soybean Meal, Soybean Oil, Micro Soybean Oil
• Livestock: Live Cattle, Feeder Cattle, Lean Hogs

Weather, planting and harvest reports, export demand, currency moves and feed costs all influence this category. Livestock contracts additionally reflect herd sizes and feed grain prices, which links them to the grain complex.

How Does Expiration and Delivery Work?

Commodity contracts specify a delivery month, and some are physically delivered while others settle in cash, depending on the contract. Contract specifications set out which applies.

In practice, most traders close positions before expiration or roll them into a later delivery month rather than holding toward delivery. Because liquidity tends to concentrate in the nearby contract and shifts as expiration approaches, monitoring the contract month is part of managing a commodity position.

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What Margins and Costs Apply to Commodity Contracts?

Day trading margin is the initial amount of money needed to open a futures order position, and it differs sharply between contract sizes. Published examples include $125 for Micro Gold, $1,250 for Gold and $25 for the 1 Ounce Gold contract. Margin rates may not be reflected in real time. Please visit the platform for current rates.

Commission is $0.49 per side for micro contracts and $0.89 per side for standard contracts, with an NFA fee of $0.02 per side per contract and exchange fees as applicable. The minimum deposit is $10 for U.S. customers, and additional fees may apply, as set out on the Fees & Charges page. Account eligibility depends on residency, verification, and other requirements.

Why Consider Plus500?

• Futures and Prediction Markets in one platform
• Transparent fees
• Regulated by the CFTC and NFA
• Unlimited demo mode
• Energy, metals and agricultural contracts in standard, mini and micro sizes
• A free trading academy (Educational resources and news)
• Free live charts and real-time market data with no data fees
• Built-in risk management features, including stop-loss orders

Key Takeaways

• Commodity contracts specify physical quantities, so tick values follow from the unit size.
• Micro versions of oil, gold and grain contracts allow much smaller position sizing.
• Energy, metals and agriculture each respond to a distinct set of drivers.
• Contract months matter, and most positions are closed or rolled before expiration.
• Margins vary widely across contracts and are shown live on the platform.

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FAQs

Will I Have to Take Delivery of a Commodity?

Most traders close or roll positions before expiration. Whether a contract settles physically or in cash depends on the specific contract, as set out in its specifications.

How Big Is a Crude Oil Contract?

Based on CME Group specifications, Crude Oil represents 1,000 barrels and Micro WTI Crude Oil represents 100 barrels, so a $0.01 price move equals $10 and $1 respectively.

Which Commodity Contracts Have Micro Versions?

Micro contracts are available across energy, metals and agriculture, including Micro WTI Crude Oil, Micro Natural Gas, Micro Gold, Micro Silver, Micro Copper, Micro Corn, Micro Wheat and Micro Soybean.

Why Do Agricultural Contracts Move on Weather?

Agricultural supply depends on growing conditions, so weather affects expected yields, which feeds into expected supply and therefore price.

Can I Practice Commodity Futures Without Risking Money?

Yes. Demo mode covers the same contracts as a live account, with unlimited virtual funds and real-time quotes.