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Crude Oil
What are the trading hours for oil contracts?
Trading hours for BCO/USD and WTI/USD contracts begin Sunday at 20:00 EST (01:00 UK time) and trade daily until 17:00 EST (22:00 UK time) Friday.
There is a daily break in trading from 18:00 EST (23:00 UK time) until 20:00 EST (01:00 UK time).
Note1: Between the hours of 17:15 EST (22:15 UK time) and 18:00 EST (23:00 UK time), and also around 20:00 EST (01:00 UK time) daily, liquidity and spreads can be extremely volatile and price availability may be limited.
Note2: On the monthly expiration date, trading will be unavailable from 14:30 EST (19:30 UK time) until all expiry procedures have been completed. See "Is there an expiry date on Brent Crude Oil contracts?".
What is the maximum number of oil contracts that can be bought or sold in a single trade?
A client can trade up to 25 lots of BCO/USD or WTI/USD, and each Brent Crude contract consists of 100 barrels. The maximum for each trade is therefore 2,500 barrels.
Is there a limit to the amount of oil I can hold in my account?
Yes, the maximum position a client may hold at any given time is 100 lots (10,000 barrels).
How is margin calculated for oil contracts?
Margin on oil contracts is set at 50:1, or a 2% margin factor.
What is one point worth when trading oil contracts?
One point is worth $1.00 when trading 1 lot. If a trader holds a position of 5 lots, each point will be worth $5.00
What is the typical spread when trading oil?
The typical spread you will see is 7-9 points. For example, the difference between 52.55 and 52.62, or 7 points, is the spread. Spreads will vary depending on market liquidity.
Can I place orders over the phone?
Yes. You can execute trades over the phone with a FOREX.com dealer by calling 0800 032 1948.
Can I hold positions over the weekend and major holidays?
Yes. You may hold positions over the weekend and major holidays, but please make sure that you review your margin balance to cover any negative move against your open positions. It is not uncommon for oil to "gap" (trade at prices considerably away from previous levels) when they re-open for trading after a holiday or weekend.
We suggest you keep a cash "cushion" in your account of at least 10% against your open positions; to help protect against automatic liquidations of your positions to meet margin requirements.
What do the prices of Brent Crude and West Texas oil contracts represent?
The price is the price of one barrel of Brent Crude, or one barrel of West Texas Intermediate, priced in U.S. Dollars.
Is there an expiry date on oil contracts?
Yes, there is a monthly expiry date on FOREX.com's oil contracts. FOREX.com oil contract prices are derived from the current (front month) prices of the Brent Crude and West Texas Intermediate contracts trading on the Intercontinental Exchange (ICE) up to the 2nd Wednesday of each month. Between that date and the expiry date of the ICE contract, the FOREX.com oil contracts will be priced from the next futures contract month to avoid expiry-related volatility. At 14:30 EST (19:30 UK time) on the date of expiration, all open contracts will be closed at the closing contract rate and all Open Orders (including GTC and EOD) will be closed. When FOREX.com reopens oil trading, it will be priced against the current rate for the next futures expiry month.
For example:
On May 1, a trader buys 1 lot of June Brent Crude at 53.80, and the contract is set to expire on May 13th. The trader holds this position right up to the expiration date, May 13th, when it is trading at 59.00. At 14:30 EST (19:30 UK time), the trader still has not closed his position, and the contract expires. The trade is closed, and all oil GTC orders are cancelled in the trader's account. The realised profit of $520 is credited to the traders account. Currency positions and orders are not affected.
At 14:50 EST (19:50 UK time), the market reopens at the price for the next expiring contract, July oil. The price opens at 56.00, since that is what the July contract is trading at when the market reopens. The trader is free to reopen the contract at the current rate, or do nothing.
What happens when a contract expires?
At 14:30 EST (19:30 UK time) on the day of expiry, all open contracts are cash settled. That means that any profit or loss will immediately be realised in your account. Any open Good-To-Day or Good-To-Cancel orders will also be cancelled.
To maintain exposure to the price of oil, a position can then be opened in the next contract month when the market reopens. FOREX.com will reopen the market as soon as all expiry-related procedures are completed.
Why do oil contracts expire at 14:30 EST (19:30 UK time)?
FOREX.com oil contracts expire at 14:30 EST (19:30 UK time) because this time coincides with both the official ICE Brent Crude and Nymex West Texas Intermediate closing prices.
What rate is used for cash settlement on expiry date?
Expiring contracts will be cash settled at the FOREX.com closing rate as of 14:30 EST (19:30 UK time) on the expiration date.
When does an End-Of-Day order on an oil contract expire?
End-Of-Day orders on oil contracts will expire at 17:00 EST (22:00 UK time) on Monday through Friday. End- of- Day orders placed after 17:01 EST (22:01 UK time) will expire the following day at 17:00 EST (22:00 UK time). Note that this convention is consistent with currency and spot metals End-of-Day orders.
Note: On Expiration Date, End-of-Day orders will be expired at 14:30 EST (19:30 UK time). Any End-of-Day order that is placed after 14:30 EST (19:30 UK time) on expiration date will be cancelled at 17:00 EST (22:00 UK time)
Are my currency positions affected by expiring oil contracts?
No, your currency positions and orders will not be affected by the Oil expiry.
What are FOREX.com's Brent Crude and West Texas Intermediate monthly expiry dates for 2009?
| Contract |
Expiration Date |
| November 2009 |
Wednesday 10/14/09 |
| December 2009 |
Wednesday 11/11/09 |
| January 2010 |
Wednesday 12/9/09 |
| February 2010 |
Wednesday 1/13/10 |
| March 2010 |
Wednesday 2/10/10 |
| April 2010 |
Wednesday 3/10/10 |
What is one lot of oil equal to?
One lot, or one contract, is equal to 100 barrels (bbl's).
How are oil contract prices determined?
FOREX.com's price quotes for BCO/USD and WTI/USD are derived from the current (front month) prices of Brent Crude and West Texas Intermediate futures trading on the Intercontinental Exchange (ICE) up to the 2nd Wednesday of each month. Between that date and the expiry date of the ICE contracts, the FOREX.com BCO/USD and WTI/USD contracts will be priced from the next futures contract month to avoid expiry-related volatility.
At 14:30 EST (19:30 UK time) on the date of expiry, trading will cease in the current month, and all open and pending positions and orders will be closed/cancelled. When trading resumes, the price will be that of the next contract month. See "Is there an expiry date on Brent Crude Oil contracts?".
Can I access oil trading right from my trading platform?
Yes - oil contracts are available on all FOREX.com trading platforms.
The trading symbol for Brent Crude oil is BCO/USD, and for West Texas Intermediate is WTI/USD.
What is the difference between Brent Crude, West Texas Intermediate, and other types of oil?
Crude oils are classified as either Light or Heavy depending on their API gravity, as well as either Sweet or Sour, depending on their sulphur content.
Brent Crude is a "light, sweet" blend, gathered from several oil fields in the North Sea. It is typically priced higher than the OPEC composite price.
West Texas Intermediate (WTI) is a "lighter, sweeter" blend and is typically priced higher that Brent Crude.
(Source: The Energy Information Administration)
Is oil included in the daily roll?
No, oil contracts are not included in the daily roll. The entirety of the carry cost, from today until the contract expiry date, is included in the price of the oil contract.
Why does the price of an oil contract change on its expiry date?
At 14:30 EST (19:30 UK time) on the expiry date, the current trading contract at FOREX.com expires and all positions and orders are closed or cancelled. When trading resumes, the contract being traded will be the next contract month. Because the whole of the carry cost is included in the price of the contract, it will most likely open at a different price.
For example:
During the month of May, the contract being traded at FOREX.com will be the contract that is going to be delivered in July (the "July contract"). At 14:30 EST (19:30 UK time) on the expiry date for the July contract, all open positions and orders will be closed/cancelled. When trading resumes, the new contract being traded will be delivered in August, and it may open at a different trading price due to a variety of macro-economic factors.
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