Crude Oil Introduction

        Crude oil is a naturally occurring petroleum product, commonly used in energy production and manufacturing. Crude oil is often purchased to be refined to produce daily diesel, gasoline, fuel oil, jet fuel, plastics, cosmetics, medicines and fertilizers. So the impact on the global economy is huge. In general, rising oil prices tend to weaken economic growth as they increase the cost of travel and transportation, raising inflationary pressures and generally stalling personal consumption. The two main categories of crude oil are American oil, commonly known as west Texas intermediate (WTI) and British petroleum, or brent. Both crude oils are characterized by “low viscosity” and “low sulfur,” indicating their low density (which makes refining and transportation easier) and low sulfur content (which makes them less impurities and cheaper to refine). As a result, they are closer to the desired end product than other “high viscosity” and “acid” crude oils, and tend to be more expensive.

Why Invest in Crude Oil ?

Great Flexibility

5*24 hours of uninterrupted quotation, two-way trading mechanism, can be bought and sold at any time. Every price fluctuation offers an opportunity to buy or sell to increase your profit

Price Transparency

The market is in line with the international market, based on international crude oil prices, the price is completely transparent, its amazing daily trading volume, so no one can control its price.

Small Transaction

Compared with crude oil futures contracts with a minimum trading volume of 1000 barrels, hc offers crude oil contracts with a minimum trading volume of 10 barrels. Its low cost and high leverage characteristics, to achieve real low investment and high return.

High Investment Value

Crude oil, known as the King of Black Gold, is a rare non-renewable resource, national strategic reserve resources, global supply and demand continue to be tight, with a high investment value.

Transaction Details

MarginThe margin requirement is 2%, which is 1:50 leverage. Trading Hours (GMT-5): Based on the actual contract trading time, please refer to the specification of each instrument.

Instrument Contract Size(=1 Lot) Min Trade Size (Lot) Max Trade Size (Lot) Floating Average Spread Instrument Contract Size(=1 Lot) Min Trade Size (Lot) Max Trade Size (Lot) Floating Average Spread
XTIUSD 1,000 barrels 0.01 20 38 XNGUSD 10,000 MMBtu 0.01 20 38
XBRUSD 1,000 barrels 0.01 20 20          

Transaction Example

Sell Crude Oil (XTIUSD)

1 lot of crude oil contract (XTIUSD) is 1000 barrels.

The customer thought that the price of crude oil would fall, so the customer decided to sell XTIUSD.

Assuming that the price of XTIUSD is 61.870/90, the customer sold 5 lots of XTIUSD at 61.870.

When the price of XTIUSD fell to 61.650/90, the customer decided to close the position, and he bought 5 lots of XTIUSD at 61.690.

Transaction Description Profit/Loss
Sell 5 lots of XTIUSD with a price of 61.870 61.870*1000*5=309,350 USD (Contract Value)
The margin requirement is 2% 309,350*2%=6187 USD Initial margin (will change due to market price)
The commission is 0.0036% of the contract value (unilateral) 309,350*0.0036%*2=22.27 USD (It is assumed that the closing price is the same as the opening price, so the commission will change due to market price.)
Close 5 lots of XTIUSD (buy), the buying price is 61.690 (61.870-61.690)*1000*5-22.27=877.73 USD Profit