WSD GLOBAL MARKETS launches Crude Oil.
You can now trade Oil:-
- 1% Margin
- 5 cent spreads
- 1pt = $10
Trading Hours for Crude Oil are:-
3:15a.m. to 12.00 p.m.
WTI (West Texas Intermediate) contract is derived from the ICE (Intercontinental Exchange) futures price.
ICE futures price is the largest price benchmark for the Crude Oil and Oil industry in general worldwide.
How does the Oil Roll over work?
Futures contracts are exchange traded products therefore their expiry dates are specified.
- We have to switch from front month to the second month on the expiry day of the WTI futures contract.
- In order to ensure that roll over costs are eliminated a cash adjustment has to be done.
- Roll over is done on the EDSP (Exchange Deliver Settlement Price) ensuring that spread costs are not charged to customers for rolling over the contract.
Please note the last trade dates of the futures contract.
Futures Contract |
Last Trading Day |
January 2009 |
18/12/08 |
February 2009 |
16/01/09 |
March 2009 |
19/02/09 |
April 2009 |
19/03/09 |
May 2009 |
20/04/09 |
June 2009 |
18/05/09 |
July 2009 |
19/06/09 |
August 2009 |
20/07/09 |
September 2009 |
19/08/09 |
October 2009 |
21/09/09 |
November 2009 |
19/10/09 |
December 2009 |
19/11/09 |
January 2010 |
18/12/09 |
The roll over will be further explained by a couple of examples: -
Assumptions:
Roll over Cost is $ 7: -
Settlement Price for current month is: 36
Next month price is: $ 44
Client Position is a buy position 1 lot at 37
Therefore: -
Example 1
Client position(long) +1 @ 37
WSD GLOBAL MARKETS will create -1 @ 44 (based on EDSP prices)
This will result in a profit of usd 7000 for the account.
WSD GLOBAL MARKETS will make cash adjustments to account by debiting usd 7000 to the account accordingly.
WSD will then create a buy position +1 @ 44(based on EDSP prices) for the account.
Example 2
Client position(short) -1 @ 37
WSD GLOBAL MARKETS will create +1 @ 44 (based on EDSP prices)
This will result in a loss of usd 7000 for the account.
WSD GLOBAL MARKETS will make cash adjustments to account by crediting usd 7000 to the account accordingly.
WSD will then create a sell position -1 @ 44(based on EDSP prices) for the account.
