Crude Oil FAQs

• What are the trading hours for oil contracts?
• What is the maximum number of contracts I can trade with one click?
• Is there a limit to the amount of oil I can hold in my account?
• How is margin calculated for oil?
• What is one point worth when trading oil contracts?
• What is the typical spread when trading oil?
• Can I place orders over the phone?
• Can I hold positions over the weekend and major holidays?
• What do the prices of Brent Crude (UK Oil) and West Texas Intermediate (US Oil) represent?
• Is there an expiry date on oil contracts?
• What happens when a contract expires?
• Why do oil contracts expire at these times?
• What rate is used for cash settlement on expiry date?
• When does an End-Of-Day order on an oil contract expire?
• Are my currency positions affected by expiring oil contracts?
• What are FOREX.com's monthly expiry dates for 2012?
• What is one lot of oil equal to?
• How are oil contract prices determined?
• Can I access oil trading right from my trading platform?
• What is the difference between Brent Crude (UKOIL), West Texas Intermediate (USOIL), and other types of oil?
• Is oil included in the daily roll?
• Why does the price of an oil contract change on its expiry date?

Trading hours for USOIL are: 18:00 New York until 17:15 New York. This market opens on Sunday and closes on Friday at 17:00 New York.

Trading hours for UKOIL are: 01:00 London until 23:00 London. This market opens on Monday and closes on Friday at 22:00 London.

Note1: Between around market opening and closing times, liquidity and spreads can be extreemly volatileand price availability can be limited.

Note2: On the monthly expiration date, trading will be unavailable from 17:15 New York (for USOIL) and 19:30 London (For UKOIL) until all expiry procedures have been completed. See "Is there an expiry date on Oil contracts?".

A client can trade up to 25 lots of UKOIL or USOIL, and each Oil contract consists of 100 barrels. The maximum for each trade is therefore 2,500 barrels.

Yes, the maximum position a client may hold at any given time is 100 lots (10,000 barrels). 

Margin on oil contracts is set at 100:1, or a 1% margin factor. 

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 

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.

Yes. You can execute trades over the phone with a FOREX.com dealer by calling 0800 032 1948. 

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.

The price is the price of one barrel of Brent Crude( UK Oil), or one barrel of West Texas Intermediate (US Oil), priced in U.S. Dollars.

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 17:15 New York for USOIL and 19:30 London for UKOIL 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 UKOIL 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 19:30 London 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 19:50 London time, the market reopens at the price for the next expiring contract, June oil. The price opens at 56.00, since that is what the June contract is trading at when the market reopens. The trader is free to reopen the contract at the current rate, or do nothing.

At 19:30 London (UKOIL) and  17:15 New York (USOIL) 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.

FOREX.com oil contracts expire at 19:30 London (UKOIL) and 17:15 New York (USOIL) because these times coincide with the official ICE UK Oil and Nymex US Oil closing times.

Expiring contracts will be cash settled at the FOREX.com closing rate as of 19:30 London time for UKOIL and 17:15 New York time for USOIL, on the expiration date.

End-Of-Day orders on UKOIL contracts will expire at 22:00 London time on Monday through Friday. End-of-Day orders placed after 22:01 London time will expire the following day at 22:00 London time.

On Expiration Date, End-of-Day orders will be expired at 19:30 London for UKOIL. Any End-of-Day order that is placed after 19:30 London on expiration date will be cancelled at 22:00 London time.

End-Of-Day orders on USOIL contracts will expire at 17:00 New York time on Monday through Friday. End-of-Day orders placed after 17:01 New York time will expire the following day at 17:00 New York time.

On Expiration Date, End-of-Day orders will be expired at 17:00 New York for USOIL. Any End-of-Day order that is placed after 17:00 New York time on expiration date will be cancelled at 17:15 New York time.

Note that these conventions are consistent with currency and spot metals End-of-Day orders.

No, your currency positions and orders will not be affected by the Oil expiry.

One lot, or one contract, is equal to 100 barrels (bbl's).

FOREX.com's price quotes for UKOIL and USOIL 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 UK Oil and US Oil contracts will be priced from the next futures contract month to avoid expiry-related volatility.

At 19:30 London (UKOIL) and 17:15 New York (USOIL) 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 Oil contracts?".

Yes - oil contracts are available on all FOREX.com trading platforms.

The trading symbol for Brent Crude oil is UKOIL, and for West Texas Intermediate is USOIL.

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)

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.

At 19:30 London for UKOIL and 17:15 New York for USOIL 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 the expiry 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.