Spread Betting Answers:
1. How to Spread Bet on US Crude Oil?
At the time of publication the US Oil (September) market is quoted at $71.32 - $71.38 with FinancialSpreads.
As with many markets, spread betting clients can financial spread bet on the future value of energies like oil.
With the US Oil (September) market, which closes on 17-Aug-09, you can financial spread trade on:
US Oil to finish higher than $71.38 per barrel on the closing date, or
US Oil to finish lower than $71.32 per barrel on the closing date.
Note that for the US Oil market, you trade in £X per tick, where a tick is $0.01 of US Oil movement. Eg if your stake was £4 per tick and the US Oil market moves $0.12 then that would be a £48 difference to your bottom line.
P&L = ($0.12/$0.01) x £4 per tick = 12 ticks x £4 per tick = £48.
Example
So let's say you see the live price on a spread betting site and it is quoting $71.32 - $71.38 per barrel for US Oil (also known as West Texas Intermediate and Nymex Crude Oil). Let’s also say that you have done your market analysis of the oil market and you think that the price of a barrel of US Oil (WTI) will close higher than $71.38 on 17-Aug-09. In other words:
- You have done your analysis and think that the US Oil should go up
- Therefore, you go long (buy) at $71.38 and you risk £2 per tick
- The oil price increases. You run the spread bet until the expiry date
- The market closes at $72.10
- Buy price = $71.38
- P&L = ((closing level - opening level) / per tick) x stake
- P&L = (($72.10 - $71.38) / 0.01) x £2 per tick stake
- P&L = 72 ticks x £2 per tick stake
- P&L = £144
Of course, if the trade did not work out as expected and had the US Oil market gone against you and finished a lower value of $70.80, then you would have lost on this spread trade.
- Price you bought the spread at $71.38
- P&L = ((closing price - opening level) / per tick) x stake
- P&L = (($70.80 - $71.38) / 0.01) x £2 per tick stake
- P&L = (-$0.58 / $0.01) x £2 per tick stake
- P&L = -58 ticks x £2 per tick stake
- P&L = -£116
(Prices quoted as of 04-Aug-09).
2. Where can I Financial Spread Bet on US Crude Oil?
You can spread bet on US Crude Oil with any of the following companies:
Spread betting markets may also be available with other companies.
3. Where can I find real-time spread betting prices for US Crude Oil?
All of the above companies provide access to real-time commodities prices to their account holders.
Note that you may need to log into your account in order to see live spread betting prices for US Crude Oil.
4. Where can I find commodities candlestick charts for US Crude Oil?
A number of the spread betting companies offer a variety of charts, including candlestick charts. Note that you may need to open an account with the respective company in order to see the charts and/or have full access to real-time charts that you can manipulate. Spread betting accounts are subject to status, terms and conditions.
Candlestick charts are currently available with:
Charts may also be available from other spread betting companies.
Example commodities charts from Financial Spreads:
"US Crude Oil Spread Bets" last update by R Thomas, 09-Aug-2010
Warning: Financial spread betting carries a high level of risk. You can lose more than your initial investment or stake. Financial spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.
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