In the world of commodities, understanding the distinction between futures and spot trading is essential for traders. Futures contracts are agreements to buy or sell a specific quantity of a commodity at a predetermined price on a set future date. This allows traders to hedge against price fluctuations or speculate on future price movements without the need for immediate physical delivery. Futures trading typically involves standardized contracts, making it a popular choice for institutional investors and those looking to manage risk. 

On the other hand, spot trading involves the immediate exchange of commodities for cash at the current market price. In spot trading, transactions are settled "on the spot," which can be beneficial for traders looking to capitalize on short-term price movements without the complexities associated with futures contracts. Understanding the nuances of both trading types enables traders to choose the right strategy based on their risk tolerance, market outlook, and investment objectives. 

When trading CFDs on commodities, traders can leverage both futures and spot contracts. CFD trading allows for speculation on price movements without owning the underlying asset, providing flexibility and access to a broader range of commodities. However, traders must consider factors like rollover costs and liquidity, as these can affect trading performance and profitability.