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Crude Oil Exchanges

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Category: Commodity

Understanding Crude Oil Contracts

Like each commodity, crude oil has its own ticker image, contract worth and margin requirements. To efficiently commerce a commodity, you have to concentrate on these key components and perceive tips on how to use them to calculate your potential earningsand loss.

 Commodities are traded primarily based on margin, and the margin modifications primarily based on market volatility and the present face worth of the contract. To commerce a crude oil contract on the New York Mercantile Trade (NYMEX) a dealer could also berequired to take care of a margin of $8,775, which is roughly 8% of the face value. The margin amount will change in different market situations, however the amount of leverage supplied by the futures markets makes it engaging for investors looking to acquire exposure to grease prices.

Crude Oil Exchanges

Futures contracts for crude oil are traded on the New York Mercantile Alternate (NYMEX), Intercontinental Exchange (ICE), Dubai Mercantile Alternate (DME), Multi Commodity Alternate (MCX), India's Nationwide Commodity and Derivatives Exchange (NCDEX) and the Tokyo Commodity Change (TOCOM)

Facts About Production

One barrel of crude oil is the equal of 42 U.S. gallons. After the barrel of oil is refined, it yields approximately 20 gallons of motor gasoline and seven gallons of diesel. With an additional 17 gallons of petroleum byproducts, resembling propane, ammonia and plastic materials, the full refining process has a net acquire of two gallons - forty two gallons go in; forty four gallons come out.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission

Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or Tradewins.