Oil

Why Trade Oil through FXCM LTD?

• 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 FXCM's advanced charting package.
• Generous Leverage: Generous leverage on all products that are clearly detailed on the Trade Station II. †
• Hedging Capability: You can go long or short oil from the same account.

Product Details

For trading times and more details, please refer to the Product Guide.

‡ Please note that FXCM strives to provide traders with tight, competitive spreads; however, there may be instances when market conditions cause spreads to widen beyond the spreads displayed here. Additionally, spreads may not be applicable to Japanese-yen-denominated accounts or client accounts of referring brokers. Certain currency pairs may not be available for all account types. For additional information about widened spreads, click here.

Trading Oil on Margin

Minimum Margin Requirements (MMR)

FXCM'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. FXCM 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 $200 (U.S.) per contract
• 1 contracts x $200 = US$200

Expiration

Oil has a monthly expiration (please see the tables below). Clients that hold an open position on the ‘FXCM Expiration’ will be closed at our bid/offer at 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.

Example:

• Client is long 5 USOil @ 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.

CFD Product Guide

* FXCM is compensated by a mark-up, which is automatically added to the spreads it receives from its liquidity providers, FXCM may also receive compensation for order flow from its liquidity providers. FXCM does not charge commissions on standard accounts, however, commission charges may apply for certain classes of non-standard accounts such as Active Trader.

† Foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

** Re-quotes occur when a trader makes an order at a specific price, but the order is rejected by a trading desk, and the trader is given a new price to accept or reject. Re-quotes can slow down your trading. FXCM cannot re-quote forex orders because those orders operate on straight through processing. FXCM also maintains a no re-quote policy for indices, metals, and oil, although those orders do not operate on straight through processing. Orders are executed at the best price available within the trader's parameters, subject to market liquidity at the time.