ENERGY

Light Sweet Crude Oil Future

WTI (West Texas Intermediate) remains the most popular energy futures with traders. It is a domestic US crude oil based on the Nymex Light Sweet Crude contract, which trades over 1 million contracts each day. Due to its low Sulphur content, it is considered to a better quality fuel compared to North Sea Brent, the second most traded crude blend on the market.

Crude oil is quoted in $/¢ per barrel with a standard contract size of 1,000 barrels per one standard lot. The minimum price movement for WTI crude oil is USD 0.01 (1 'tick' or 'point'). Therefore, the smallest tick value is $10 per one standard lot, e.g. $78.45 - $78.46 = $0.01 ($0.01 * 1000 = $10).

Professional crude oil investors often trade products against each other to take advantage of their constantly changing price relationship. This is known as a 'crack', which involves taking a position in gasoil in opposition of a crude contract. When a trader takes a position on North Sea Brent in opposition of a WTI contract, this is known as a ‘short arb’.

Brent Crude Oil Future

Brent crude oil is the second most popular product with many traders, and serves as the benchmark for European and OPEC pricing. The minimum price movement is USD 0.01 (1 'tick' or 'point'). Therefore the smallest tick value is $10, e.g. 78.45 – 78.46 = $0.01 therefore (0.01 USD * 1000 = $10).

At TradeWell invest, our Brent crude oil futures are traded with a contract for difference (CFD), based on an Exchange Futures Contract that will expire at a set date. A crude oil trading position held with TradeWell invest will expire as per the dates below and will not be rolled over into the following month.

E-Mini Natural Gas Henry Hub Future

An OTC E-Mini Natural Gas Henry Hub Future Contract is an agreement held between a buyer and seller. It offers opportunities for risk management of the highly volatile pricing of natural gas. Energy prices can often be subject to sudden price movements, so setting stop-losses and take-profits on the MetaTrader 4 trading platform is an important part of the process.

The minimum price movement is USD 0.01 (1 'tick' or 'point'). Therefore the smallest tick value is $10 per standard lot, e.g. $78.45 - $78.46 = $0.01 ($0.01 * 1000 = $10).