Your capital is at risk. You may lose all of your invested capital.
Energy
Oil and Natural Gas contract trading does not differ much from regular currency trading. Oil and Natural Gas investment is a profitable and reliable way of diversifying risks during periods of market instability.
Energy advantages:
- Clearly stated world's tendencies;
- Trend market;
- Investments distribution;
- Risk diversification.
Specification of contracts:
| Instruments | Silver Account | Raw Spread Account |
|---|---|---|
| Spreads | ||
| Spot UK Brent Oil | 0.14 | 0.07 |
| WTI OIL | 0.12 | 0.05 |
| NGAS | 1.20 | 0.12 |
Energy margin calculation:
Energy mainly includes three energy commodity contracts for investors to trade.They are UKOIL, USOIL and NGAS. Each 1000 units of UKOIL is represented as 1 lot. Each 1000 units of USOIL is represented as 1 lot. Each 10,000 units of NGAS is represented as 1 lot. UKOIL, USOIL and NGAS are known to be quoted at 62.25, 53.45 and 4.3975 respectively EURUSD quoted at 1.13750 and GBPUSD quoted at 1.27387. The margin calculation for energy products works as follows:
Case example
- Case 1:Assume someone wants to buy 1 lot of UKOIL at the current price. What is the required margin?
- 1)If the currency of the account is in USD, the required margin is:1*62.25*1000/10=6225.00(USD)
- 2)If the currency of the account is in EUR, the required margin is:3112.5/1.13750=5472.53(EUR)
- 3)If the currency of the account is in GBP, the required margin is:1.27387=4886.68(GBP)
- Case 2:Assume someone wants to buy 1 lot of USOIL at the current price. What is the required margin?
- 1)If the currency of the account is in USD, the required margin is:1*53.45*1000/10=5345.00(USD)
- 2)If the currency of the account is in EUR, the required margin is:2672.5/1.13750=4698.90(EUR)
- 3)If the currency of the account is in GBP, the required margin is:1.27387=3688.68(GBP)
- Case 3:Assume someone wants to buy 1 lot of NGAS at the current price. What is the required margin?
- 1)If the currency of the account is in USD, the required margin is:1*4.3975*10000/10=439.75（USD）
- 2)If the currency of the account is in EUR, the required margin is: 2198.75/1.13750=386.59（EUR）
- 3)If the currency of the account is in GBP, the required margin is:1.27387=303.48（GBP）