Futures, Options and Derivatives

  • Trade 190 Futures
  • 19 major exchanges
  • Use Limits, Stop-Limit, Stops and Trailing Stops

Trade Oil, Gold and Energy Futures Online

Online futures trading with Alliance FX Capital. Ltd. (AFXC) gives investors access to oil futures trading as well as a wide range of other commodities, including metals, currencies, bonds, energies and indices across the world's busiest futures markets from Chicago to Singapore. Online futures trading on Euronext. CMEGroup and other global markets is available at ultra-low commission rates through Alliance FX Capital’s leading online trading platforms.

With oil and commodities futures trading, investors have the opportunity to trade in, or hedge against, market movements in the underlying asset. As a flexible alternative to online futures trading, AFXC now offers up to 20 commodities CFDs which allow crude oil and commodities trading in smaller lot sizes with lower margin requirements.

Volatility Index (VIX) Futures Contract

AFXC offers trading in one of the world’s most important volatility references – the VIX Index. The VIX Index is traded on the Chicago Board Options Exchange (CBOE) and is based on the implied volatility of S&P 500 Index Options, and reflects the consensus view of the expected 30-day stock market volatility.

Oil and Commodities Futures Trading

Futures are financial contracts used for trading a fixed amount of a commodity or financial instrument at a pre-determined price at a future date. Futures contracts are derivatives of various asset types, ranging from traditional commodities such as corn, wheat, and orange juice to government bonds, interest rates, energies and stock indices. These contracts are standardized to facilitate trading on futures exchanges and specify the type, unit price, amount and quantity of the underlying asset. The futures market is one of the most active and liquid marketplaces worldwide, providing tight spreads and low trading costs. Futures’ trading is closely regulated by the different exchanges and the detailed nature of futures contracts helps promote transparent pricing. Clients should note that there is no physical delivery when trading oil or commodities futures through a AFC trading account. Commissions for oil and commodities futures trading are based on volume, decreasing with the amount traded. Prices as low as USD 0.30 per contract are available for large monthly trading volumes.

Benefits of Oil and Commodities Futures Trading with AFXC


  • Trade oil and energies, agricultural products, metals, currencies, stock indices, short-terms interest rates, meats and softs
  • More than 140 futures across global exchanges on live market prices (subject to subscription) direct from and relevant exchanges
  • Easy execution of Limit, Stop Limit, Stop and Trailing Stop orders through the trade module, Order module or Account Summary module

Build a diversified portfolio by adding oil and commodities futures to Forex trading, CFDs, Stocks and Options; all from a single Alliance FX Capital Ltd. account.

You can also trade Futures and Options contracts in Frozen Orange Juice Concentrate, Cotton, Lumber, Cocoa, Coffee and Sugar

Contact Us and consult with one of our Account Specialist



Soft and Agricultural Commodities

AFXC ‘s Soft & Agricultural Commodities desk – through our affiliates in New York, Chicago and in London –offers execution in a wide range of soft and agricultural commodities including grains, livestock, oilseeds and other products.

We also offer execution on all Asian commodity exchanges.

AFXC has affiliate presence with the ICE and the floor of CME, which allows us to deliver execution in bilateral as well as cleared, exchange listed products.

Soft Commodities (or "Softs") refers to a specific, non-metal, non-energy set of commodities. However defined, nearly all agree that the soft commodities category includes cocoa, coffee, cotton, sugar, and orange juice. Often, the category is defined as tropical agricultural commodities. The common classification of lumber as a soft commodity is by designated as essentially a farmed product as is palm oil and rubber.

There are a handful of grains and meat which make up the core of agricultural commodity trading. Grains include corn, wheat, oats, rice, soybeans. Other agricultural commodities include rape seed, milk, cocoa, coffee, sugar, frozen orange juice concentrate, and cotton. Livestock include hogs, pork bellies and cattle. These commodities are traded in a variety of different grades and types, and there are other exchange-traded agricultural commodities.

Agricultural commodities trading have sometimes been referred to as the grandfather of all markets. The same basic challenges have been around since the beginning of agriculture, agricultural production, vulnerable to weather, insects, disease and the like, is an inherently uncertain undertaking, and is both capital and labor intensive. A farmer would like a guaranteed minimum return and would prefer money now over money later. A purchaser would like to plan on a maximum price for an agricultural product now and so has an incentive to mitigate the risk of a price rise at harvest time.

Key Commodity Exchanges and Contracts Traded
ICE LIFFE/MATIF Europe CBOT/CME Other Products / Asia
Sugar White sugar Corn White Sugar
Coffee Robusta coffee Wheat Sugar
Cocoa London Cocoa Soybeans Rice
Cotton Paris Milling wheat Soybean Meal Palm Oil
Orange juice Rapeseed Soybean Oil Rubber
Canola Malting Barley Live Cattle
Barley Corn Feeder Cattle
Durum Lean Hog
Oats  

futres

There is always demand for food, so that would make it a good long-term investment. And there will occasionally be disruption to supply, from drought, flooding, pestilence or disease, so that would make it a good short-term investment if your timing is right.

A recent Barclays report shows institutions hold about 6 per cent of their assets in broad commodities.

That is the general exposure which will lower a portfolio’s correlation to equities.

Prices of agricultural, or soft, commodities are often volatile, with events such as droughts in Russia pushing wheat prices higher and monsoons in India putting a spike in sugar. The short-term volatility provides opportunity. Knowing when to jump-in requires research skills

Fund managers have been reweighting portfolios to take advantage of this long-term growth for some time. For the online trader, the volatility in commodities is pretty high and so it allows for opportunities for short-term strategic trades.

In a market where futures contracts are trading above the spot price (known as contango) fewer contracts will be afforded at rollover time. This takes some air out of any gains. When futures prices are trading below spot prices (a market in backwardation), the opposite will occur, adding some relief to losses.

Futures contracts are rolled over before expiry, to avoid taking physical delivery of commodities.

Trade Futures and Options on Agricultural and Soft Commodities; please Contact Us.




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