Oil & Gas
Trade energy products including Crude Oil and Natural Gas. Up-to-date margin requirements are displayed in the "Simplified Dealing Rates" window of the Trading Platform by instrument.
Why trade oil through FXCM LTD?
- No Re-quotes:1 on all energy products, giving you fast, efficient trade execution without expensive re-quotes.
- Minimum Trade Size: Trade from as little as 1 contract or $0.10 per tick.
- Lower Transaction Costs: Trade commission free2, no exchange fees, & no clearing fees. The transaction cost is the spread, the difference between the buy and sell price.
- Advanced Charting: Keep track of oil and trade from FXCM's advanced charting package.
- Generous Leverage:3 Generous leverage on all products that are clearly detailed on the Trade Station.
- Hedging Capability: You can go long or short oil from the same account.
Trading Oil on Margin
FXCM's margin rates are displayed in the dealing rates window on the trade station and detail the client's capital obligation to buy or sell 1 contract of a single index. FXCM has standardised minimum/incremental trade sizes for each instrument. To calculate the margin required to place the minimum trade size, simply multiply the minimum trade size by the margin required (per contract) which is displayed in the dealing rates window.
- USOil minimum trade size is 1 contract
- MMR is $20 (U.S.) per contract
- 1 contracts x $20 = US$20
Oil has a monthly expiration. Clients that hold an open position on the 'FXCM Expiration' will be closed at our bid/offer at:
- USOil: 21:00 p.m. GMT
- UKOil: 21:00 p.m. GMT
- NGAS: 21:00 p.m. GMT
Which means the client will realise any floating P/L at the time it is closed.
- Client is long 5 USOil @ 72.00.
- One day prior to expiration, the expiring month is trading at 73.00.
- The customer position is closed at 73.00 and the profit is credited to the clients trading account.
- All pending Stop and Limit orders that are associated with the expiring contract will be canceled.
- Client will need to re-establish another long position (assuming they wish to) and reinsert Stop and Limit orders to the new open position.