OTC Energy Futures

OTC Energy Futures

When talking about Over The Counter (OTC) Energy Futures these are different to spot prices. We are talking about a contract which is a legally binding agreement to buy or sell energy futures in the future at an agreed price at a set time period. Futures contracts have standard characteristics in terms of quantity, quality, time and delivery.

Trading with future contracts provides you as a customer with a risk management tool to protect the price of your purchase or sale. It also offers the option to get involved in the precious metals market without having a position in the physical energy markets.

OTC Light Sweet Crude Oil Future

Often traders who trade oil products find WTI (West Texas Intermediate) one of the most popular. WTI crude oil is a US domestic crude oil based on the Nymex's Light Sweet Crude contract. It has a lower sulphur content than Brent making it a slightly better quality fuel.

Crude oil is quoted in $/¢ per barrel with a standard contract size of 1000 barrels per one standard lot. The minimum price movement for WTI crude oil is USD 0.01 (1 'tick' or 'point'). Therefore the smallest tick value is ten dollars per one standard lot. E.g. $78.45 - $78.46 = $0.01 ($0.01 * 1000 = $10).

Professional crude oil traders often trade one of the oil products against another to take advantage of their ever changing price relationship. This is known as the 'Crack' when taking a position in Gasoil with an opposite position in one of the Crude contracts. It is known as the 'Arb' when taking a position in the Brent with an opposite position in the WTI contract.

OTC Brent Crude Oil Future

Brent Crude oil is also popular with individuals who trade oil products. It is the benchmark for Europe and OPEC pricing. The minimum price movement is USD 0.01 (1 'tick' or 'point'). Therefore the smallest tick value is ten dollars. E.g. 78.45 – 78.46 = $0.01 therefore (0.01 USD * 1000 = $10).

Our Brent Contract is a CFD. It is based on an Exchange Futures Contract that will expire. A crude oil trading position held with ICM Capital will expire as per the dates below and will NOT be rolled into the next month.

OTC E-Mini Natural Gas Henry Hub Future

An OTC E-Mini Natural Gas Henry Hub Future contract is a contract between a buyer and a seller that offers opportunities for risk management of the highly volatile pricing of natural gas. Energy prices can often be subject to dramatic price movements so setting stop-losses and take-profits on the MetaTrader 4 is very important.

The minimum price movement is USD 0.01 (1 'tick' or 'point'). Therefore the smallest tick value is ten dollars per standard lot. E.g. $78.45 - $78.46 = $0.01 ($0.01 * 1000 = $10).

Contract Specifications

i. All above instruments are on market execution
ii. All times are based on ICM Capital Server time
iii. Subject to change without prior notice
iv. No commission charged for all above products

Swap Policy

ICM Capital offers Islamic accounts to clients following the Muslim faith. Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

ICM Capital reserves the right to discontinue an Islamic/SWAP-free account without warning. ICM Capital will invoke this right in case of suspicion of abuse, in which case ICM Capital may, at its sole discretion, decide to close all open positions in the account and deduct or add swaps for all transactions currently and/or previously made in the account and decline from accepting any further requests from the Client to be exempted from SWAP.

Broaden your OTC Energy Futures knowledge

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