Why Trade Oil through Friedberg Direct?
- No Re-Quotes** 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 $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 Friedberg Direct's advanced charting package.
- Hedging Capability: You can go long or short oil from the same account.
Trading Oil on Margin
Minimum Margin Requirements (MMR)
Friedberg Direct'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. Friedberg Direct 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 rates window.
- USOil minimum trade size is 1 contract
- MMR is $900 (U.S.) per contract
- 1 contracts x $900 = US$900
Oil has a monthly expiration (please see the tables below). Clients that hold an open position on the 'Friedberg Direct 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.
- 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.
*Spreads & Commissions: Dynamic live streaming spread figures shown are from the Best Bid/Best Offer pricing engine. Static historical spread figures are time-weighted averages derived from tradable prices from 1 October 2015 to December 31 2015. Spreads are variable and during normal market hours are subject to delay. We strive to provide traders with tight, competitive spreads; however, there may be instances when market conditions cause spreads to widen well beyond the spreads displayed here.
Advertised spreads & commissions may not apply to all accounts. Some accounts, such as those referred by certain referring agents or those using third party technology, may be subject to a spread markup and/or additional commission. Accounts set to a commission structure will be charged in the currency denomination of the account.
The figures above are provided for information purposes only, and are not intended for trading purposes or advice. We are not liable for any information errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
*Compensation: When executing customers' trades, Friedberg Direct powered by FXCM Technology can be compensated in several ways, which include, but are not limited to: charging fixed lot-based commissions at the open and close of a trade, adding a markup to the spreads it receives from its liquidity providers for certain account types, and adding a markup to rollover.
† Leverage is a double-edged sword, and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.
** Friedberg Direct 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.