How does Commodity CFD trading work?
A Contract for Difference (CFD) is an agreement between a buyer and a seller. This means that the seller pays the buyer the difference between the commodity's price and its price at the time of the contract. When your buy or sell CFD commodities, you’re taking a position on whether the value of the product will rise or fall. When it comes to high inflation, commodity prices tend to also rise. Some traders view this as a good time to open short positions and sell.
Buying a CFD means you're trading on the expectation of a price movement - you don't have to actually buy the product. You can take a short position expecting the price to fall, as well as a long one expecting the price to rise.