Oil CFDs

UK Brent and US Crude Oil trading

BlueOrange FX provides the most in-demand commodities available for sale throughout the world

  • Open Long and Short positions

  • Leverage up to 1:10

  • Low floating spreads starting from $0.10

  • Minimum order volume 1 CFD

  • Flat rate1.125 b.p. (0.01125%)

  • Competitive margin requirements

Oil CFDs (Contracts for difference)

Oil is not only one of the most important components of the global energy system and economy, it also happens to be one of the most popular exchange commodities. Players on the global oil market are whole countries, petroleum and investment companies, and private entrepreneurs.

As a result of the influence of various factors, rather high volatility and responsiveness of "black gold" prices to world events, oil trading is not only a potentially profitable activity that generates a lot of excitement.

A CFD, or contract for difference is an agreement to exchange the difference in the prices of a specific asset at the times of opening and closing the contract.

Unlike traditional trading on these markets, you do not require large amounts of capital – CFDs are traded on margin, just like Forex instruments.

Specifics of trading CFDs


CFD tirdzniecības īpatnības

Contracts for difference were created to suit the needs of all traders:

✔ Trading on rising and falling markets – just like Forex plays, CFD trading allows you to buy (go long) if you expect the market increase prices or sell (go short) if you think the market is ripe for a downward adjustment.

✔ Effective allocation of capital with a high degree of leverage – CFDs are traded with a so-called credit shoulder, which means that you need a relatively small deposit to open a position, as opposed to tying up the entire price of a transaction.

✔ Longer trading hours – a number of CFD instruments are traded outside of regular trading sessions.

✔ Hedging opportunities – if you suspect that stocks or other assets in your portfolio might lose value in the short term, you may sell a CFD in order to cover the difference. 

Trading conditions

Description

Symbol

Initial margin*
Contract
size
Point
 value*
Maximum exposure
Trading session
(summer)
Trading session
(winter)
UK Brent OilBRENT.CMD/USD10% (1:10)
1 CFD = 100 barrel0.01 = 1.00 USD650Mon. 00:00 – Fri. 21:00Mon. 01:00 – Fri. 22:00
US Crude OilLIGHT.CMD/USD10% (1:10)
1 CFD = 100 barrel0.01 = 1.00 USD650Sun. 22:00 – Fri. 21:00Sun. 23:00 – Fri. 22:00
Natural GasGAS.CMD/USD10% (1:10)
1 CFD = 100 MMBTU0.1 USD4500Sun. 22:05 – Fri. 21:00Sun. 23:05 – Fri. 22:00
High Grade CopperCOPPER.CMD/USD10% (1:10)
1 CFD = 100 lbs0.1 USD8000Sun. 22:05 – Fri. 21:00Sun. 23:05 – Fri. 22:00
Low Suplhur GasoilDIESEL.CMD/USD10% (1:10)
1 CFD = 4 tonnes0.04 USD1800Mon. 00:00 – Fri. 21:00Mon. 01:00 – Fri. 22:00

* point equals the second digit after the decimal point (0.01) in a CFD's price quote

How we calculate commission on commodities

TRADING FEE
We offer a commission, which is calculated depending on the trade turnover. Clients receives floating spreads from $0.10 and pays fixed commission $112.5 per 1 million U.S. dollars traded (0.01125%). Collected in proportion to each trading operation performed.

CFD DISCLAIMER
CFD pricing utilises ECN marketplace price competition technology. Each BlueOrange Bank client (ECN marketplace participant) can affect pricing and liquidity by placing BID and OFFER orders of their own. BlueOrange Bank acts as a counterparty for each transaction and might hedge a CFD with other clients or financial markets. WARNING: The price of a CFD is not the same as the price of a hedging instrument. CFD pricing is not derived from a hedging instrument legally or economically. CFD pricing does not directly reflect exchange prices on the underlying assets and should not be considered to represent information from the relevant exchanges. Our CFD quotations should not be considered exact price information provided by an exchange and/or the trademark owner of a hedging instrument.

MONTHLY CFD ADJUSTMENT
BlueOrange Bank offers non-expiring spot CFDs in BRENT.CMD/USD (UK Brent Oil) and LIGHT.CMD/USD (US Crude Oil). Oil CFD spot pricing will depend on futures prices in the relevant commodity markets. Because of this, adjustment takes place one day prior to expiration on WTI and Brent crude oil contracts. At 13:30 GMT summer time / 14:30 GMT winter time on the relevant date, our counterparty regulates and officially announces the relevant CFD's adjustment rate. Depending on the direction of our client’s position, this might represent a debit or credit of funds to or from their account. Five hours later on the same day, at 18:30 GMT summer time / 19:30 GMT winter time, the client’s account is adjusted according to the published adjustments. Clients who wish to avoid such price adjustments should close their open positions in BRENT.CMD/USD (UK Brent Oil) and LIGHT.CMD/USD (US Crude Oil) by 18:30 GMT summer time / 19:30 GMT winter time. On the date of adjustment, trading in BRENT.CMD/USD and LIGHT.CMD/USD is suspended at 18:30 GMT summer time / 19:30 GMT winter time. BRENT.CMD/USD trades resume at 00:00 GMT summer time / 01:00 GMT winter time; LIGHT.CMD/USD trades resume at 22:00 GMT summer time / 23:00 GMT winter time.

CFD DIVIDEND ADJUSTMENT
CFD positions in indexes may be subject to dividend adjustments, which apply to open positions on ex-dividend days (i.e. positions that stand at settlement time of the preceding trading day). Dividends for long positions are adjusted and credited to a client’s account; conversely, short position dividend adjustments are debited from a client’s account. The values in the Long and Short position columns in the table below represent the applicable dividends in the currency of the relevant CFD instrument that will be credited or debited for 1 contract.

DISCLAIMER

Margin Forex and CFD are complex instruments and come with a high risk of losing money rapidly due to leverage.

More than 75% of retail investor accounts lose money when trading Margin Forex and CFDs with this provider.

You should consider whether you understand how CFDs and Margin Forex work and whether you can afford to take the high risk of losing your money.

Margin Forex and CFD are not suitable for all investors. Margin Forex and CFD suitable to retail investor only with previous experience of trading.