Commodity trading involves buying and selling raw materials, including oil, gold, and silver. You can physically trade these commodities or their derivatives through CFDs and future contracts.

Commodity derivatives provide an alternative way to engage in the market without trading physical assets. CFDs and futures contracts are two common derivatives used in commodity trading.

Commodity CFDs allow traders to speculate on the price movement of commodities without owning the underlying commodities. CFDs provide the opportunity to gain from both the upward and downward movement of the markets, allowing traders to increase their potential profits in different market conditions. 

With flexible leverage, traders can control a larger position size with a relatively smaller amount of capital. Compared to physical trading of commodities, CFDs are more liquid and accessible, offering easy access to global commodity markets.