Oil
CFDs
Why Trade Oil through FXCM?
- Minimum Trade Size: Trade from as little as 1 contract or $1 per tick.
- Low Transaction Costs: Trade commission free, 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: Generous leverage on all products that are clearly detailed on the Trade Station II. Without proper risk management, high degree of leverage that can lead to large losses as well as gains.
- Hedging Capability: You can go long or short oil from the same account.
- No Re-Quotes: FXCM maintains a no re-quote policy for forex orders, indices, metals, and oil. Circumstances may exist based on order size, trading pattern, and/or market conditions when individuals may not receive execution at the requested rate. In such cases, orders are executed at the next available rate within the trader's parameters. All prices are subject to the activity and conditions in the underlying market.
Product Details
| Instrument Name | Minimum Trade Size |
Margin Requirement Per Min Trade Size |
Target FXCM Spread | Minimum Stop Distance (Points) | |||
|---|---|---|---|---|---|---|---|
| USD | GBP | EUR | AUD | ||||
| USOil | 1 | 200 | 125 | 140 | 240 | 0.05 | 0.1 |
| UKOil | 1 | 200 | 125 | 140 | 240 | 0.05 | 0.1 |
| NGAS | 1 | 40 | 30 | 30 | 45 | 0.01 | 0.005 |
Trading Oil on Margin
Minimum Margin Requirements (MMR)
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 standardized 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 rate.
- USOil minimum trade size is 1 contract
- MMR is $200 (U.S.) per contract
- 1 contracts x $200 = US$200
Expiration
Oil has a monthly expiration (please see the table below). Clients that hold an open position on the ‘FXCM Expiration’ will be closed at our bid/offer at:
- USOil: 5:15 p.m. ET
- UKOil: 5:15 p.m. ET
- NGAS: 5:15 p.m. ET
The only consequence of this is the client will realise any floating P/L at the time it is closed.
Example:
- Client is long 5 US Oil @ 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.