Buying and selling Commodities with Easy-Forex®
The energy commodities which can be traded on the Easy-Forex® platform include, WTI Crude Oil, Brent Crude, Gas Oil and Heating Oil. These commodities are traded in open outcry or electronic markets and are usually traded for the purposes of speculation or hedging. They are now available to trade through the Visual Trading™ platform at Easy-Forex®.
Commodities futures contracts are usually the products traded in commodities exchanges. A futures contract is a contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. In your account you will be able to trade commodities as Day-Trades keeping in mind that the deals are cash settled (there is no delivery of the product) and they must expire on a set date in the future. This date is based on the next futures delivery month on commodity exchanges.
A basic overview of the energy commodities on offer
WTI OIL: West Texas Intermediary (WTI) light sweet crude oil is traded on the New York Mercantile Exchange (NYMEX). It is the most popular oil futures contract, regularly quoted as the benchmark for oil prices globally.
BRENT CRUDE: A light, sweet crude oil sourced from the North Sea primarily traded in the London Brent market. It is named after the Brent goose by the Dutch oil company Shell.
GAS OIL: One of the products of crude oil primarily used for heating and power generation. After petrol, this product represents the largest segment extracted from crude oil.
HEATING OIL: Heating oil is a refined product of crude oil. In Europe it is known as Gas Oil and is used especially to heat North American homes.