Oil Trading

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Advantages of Trading Oil with Star Financial Markets

Experienced oil trading team with 30+ years combined experience in the oil and energy markets.
Low Margin.
Fixed highly competitive spread.
No dealer intervention.
No brokerage fees or commission.

WTI Crude Oil (West Texas Intermedia)

Star Financial Markets is pleased to add WTI Crude via the Star Financial Markets platform. WTI (West Texas Intermedia) is a US domestic crude oil based on the Nymex's Light Sweet Crude contract.

WTI Crude Oil Details:

5 cent spread.
1% Margin.
Free of dealer intervention.
NO exchange fees - NO clearing fees - NO commission fees.
10 barrels minimum trade (Exchange minimum trade of 1,000 barrels).

Trading hours (GMT): Sun - Fri, 22:00 - 21:15 (21:15-22:00 daily break).

Oil Rollover Explained

Unlike Spot Foreign Exchange, the oil contracts are based on the ICE futures price (Front-Spot Month). This futures price is the largest price benchmark for the oil industry worldwide.

Futures contracts EXPIRE because they are related to a definitive date and there are many months traded. (The forward prices can be higher or lower depending on market conditions).

In order to remove final day volatility at Star Financial Markets we switch from using the front month and into the second month one trading day prior to the exchange expiry.

An example of this is when the Brent for September expires, the October price needs to be used and the price will increase by $1.38. This is obviously not a price rise in oil but just a move to a new reference price and therefore no profit or loss will be incurred as a result.

In order to make sure this does not cost, a cash adjustment needs to be made and please find two examples below:

Oil Rollover Examples

Example 1

Long position of 1000 barrels @ $113.47
Cash adjustment of - $1,380 is made on account
Profit of $1,380 is made on open position
Net financial effect is zero.

Example 2

Short position of 2000 barrels @ $113.47
Cash adjustment of +$2,760 is made on account
Loss of $2,760 is incurred on open position
Net financial effect is zero.

Oil Trading Spreads & Trading Hours

MT Code Market Name (GMT+3) Open (GMT+3) Close (GMT+3) Break

WTI WTI Crude Oil(Future) Monday 01:00 Friday 24:00 00:15-01:00

The Star Advantage

Tight Spreads from 1 Pip on Majors
Trade from 1% Margin or less and Maximise your Leverage
Absolutely NO COMMISSION or Hidden Fees
Access to Real Time Charts and Economic News
No Dealer Intervention (NDD)
Australian Based ASIC Regulated Brokerage Firm with Local
Automated Trading with EXPERT ADVISORS to Enable You to Execute Winning trading Strategies
Locally Held Deposits with HSBC in Client Segregated Accounts
Instantaneous Auto Trade Executions
Flexible Trading Sizes
Earn Interest on Cash Balances
24 Hour Support

Risk Warning: Trading Forex and Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Financial Services Guide (FSG) and Product Disclosure Statements (PDS) for these products is available from Star Financial Markets Pty Ltd to download at this website or hard copies can be sent by contacting the offices at the number above. The FSG and PDS should be considered before deciding to enter into any Derivative transactions with Star Financial Markets Pty Ltd. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. © 2011 Star Financial Markets Pty Ltd (Star FM) ACN 127 606 348. All rights reserved. Star Financial Markets Pty Ltd is a Corporate Authorised Representative of AxiCorp Financial Services Pty Ltd AFSL 318232 ACN 127 606 348.