Brent Crude Oil Futures

Brent Crude Oil Futures

Commodity trading, both historically and in modern times, has created significant amount of profits for traders and investors. The benefits of trading commodity futures are so numerous that the top commodities to trade are profitable enough to become the focus of many traders’ long time careers.Quick tips for trading commodities are not enough for long-term profitable trading. In order to profit from commodity trading, an investor must store in their minds some information on the commodity they are trading. PCM International offers a brief history of Brent Crude Oil futures trading as well as the information and facts that are necessary to know before stepping into the world of unlimited success; futures trading.

Crude Oil naturally occurs as a liquid fossil fuel resulting from plants and animals that have been exposed to extreme pressure and heat underground. Having its prices increase significantly in the recent years. Brent Crude Oil is considered one of the most demanding commodities to trade. Value of Brent Crude Oil is dependent on global economic conditions as well as market speculation.

 

Advantages of trading Brent Crude Futures

When choosing the best investment vehicle, futures contracts offer a long list of advantages for traders. With the option to trade rent Crude in the form of a futures contract, Brent Crude also carries with it these advantages.

 

-Instant access to profits

            Unlike many other trading vehicles, trading futures provides you with instant access to your profits.

 

-Holding on to trade positions

            While trading Brent Crude futures, you may have a whole year to hold on to your position without worrying about roll-overs or interest rates

 

-Low Margin requirements

            As previously mentioned, futures trading is a highly leveraged trading instrument. It follows that futures margin requirements are incredibly low. As a result, traders can expose themselves to a larger value of stocks than they could when trading the original stocks.

 

A key factor of trading futures successfully is being educated about potentially profitable trading opportunities and knowing it’s in-depth specifications and benefits. The table below is provided for further details about this contract.

 

Brent Crude Oil Futures

Symbol

Underlying Asset

Contract Size

Price Quote

Minimum Tick Size

Daily Price Movement Limit

Price Basis

Final Cash Settlement Price

Delivery Months

Trading Day

Trading Hours

Last Day of Trading

Cash Settlement Day

New Contract Listing

EFP / EFS / Block Trades

Time Limit for EFP / EFS /
Block Trade Registration

Max Open Position Limit

Max Order Size

DBRC

DGCX Brent Crude Oil Futures

1,000 barrels (42,000 gallons)

US Dollars and Cents per barrel

US$ 0.01 per barrel (US$ 10 per tick)

No Limit - Note 1*

Cash Only Settlement Contract

The front month settlement price for Brent Crude Oil futures as made public by ICE for the last day of trading of the DGCX front month contract

12 consecutive months plus 10 contract months consisting of June and December months will be listed for an additional five calendar years

Monday through to Friday

07:00 - 23:30 Hours Dubai time (GMT+4)

Last Day of Trading shall be the second UK business day immediately preceding the 15th day prior to the first day of the Delivery Month; if such 15th day is a banking day in London. If the 15th day is a non-banking day in London (including Saturday), trading shall cease on the second UK business day immediately preceding the first UK business day that precedes the 15th day. If the second UK business day is not a DGCX Business Day, then the preceding DGCX Business Day shall be the Last Day of Trading

The Business Day folloing the last day of trading

Business day immediately following the last trading day

As per DGCX By-Laws. Minimum Block size permitted is 200 contracts

Up to 15 minutes after cessation of trading on any trading day

No Limits

500 Contracts

Note 1*: There will be no limits on intra-day price movements, however to restrict data-entry errors the system will not allow entry of orders having prices higher or lower than US$ 3 as compared to the Previous Close Price. Exchange shall relax the intra-day price range for the prices of the contract approaching the US$ 3 limit.

Initial Margin

Calendar Spread Margin

Extra Margin

Click on the "Initial Margin" TAB

100% benefit is offered on calendar spread positions.

At times of high volatility, an extra margin, as deemed fit by the Exchange, may be charged.