Product Specification
Energy
Trading Terms And Conditions (Rules And Regulations)
Carefully read through all this Trading Terms and Conditions (Rules and Regulations) for individual opening account at United Global Asset Management (UGAM), this Trading Terms and Conditions is a part of Customer Electronic Trading Agreement, once the Customer(s) agree to this Customers Trading Agreement and logging to the trading platform the Customer(s) is bound to the Customer Trading Agreement and also the Trading Terms and Conditions (Rules and Regulations).
| SYMBOL | PRODUCT DESCRIPTION | UNIT | CONTRACT SIZE/LOT | MARGIN REQUIREMENT FOR TRADING | MARGIN HEDGE PER LOT | SWAP CHARGE | SWAP 3 TIMES |
MARGIN CALL | STOP OUT LEVEL | TRADING HOURS | PENDING ORDER INCL. (SL/TP) | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DAILY TRADE
( USD / LOT ) |
DAILY OVERNIGHT / FRIDAY / USA PUBLIC HOLIDAY ( USD / LOT ) |
SERVER TIME ( GMT +2 ) |
GOOD TILL | |||||||||
| OIL | WTI Crude Oil Spot Price in US Dollar | BARRELS | 1.000 | 1.000 | 2.000 | 150 | BY % | WEDNESDAY | 100% | 10% |
MONDAY TILL FRIDAY SUMMER : 01.00 - 23.00 WINTER : 01.00 - 24.00 |
FRIDAY & USA PUBLIC HOLIDAY |
Note :
- OIL contract futures month trading is for two month onward
- When there is any market holiday or any changes to market hours, customers will be notified through the trading platform mailbox
Calculation Illustration
The transaction size is 1.000 barrels.
Profit / Loss = (Sell price - Buy price) x Contract Size
= ($53 – $50) X 1.000 = $3.000
ROLL OVER
Expiration of Futures Contract
Futures contracts have an expiry date, knowing when the oil contract month end will influence the outcome of your trades (entry/exit) strategy. The two most important expiration terms are Liquidate and Rollover.
Traders have 2 choices to choose when a contract is near expiration
A contract's expiration date is the last day you can trade that contract, Prior to expiration, a futures trader has 2 choices:
1. Close the Position
Closing or liquidating a position is the simplest and most common method of exiting a trade. When closing a position, a trader is able to realize all profits or losses associated with that position without taking physical or cash delivery of the asset, in this case Oil.
2. Rollover
Rollover is when a trader moves his position from the front month contract (next month contract) to a next subsequent contract month (next 2 months contract). A trader who choose to roll their positions, do not have to do anything on the Final Settlement Day (FSD). The broker will bring forward the position to the next contract month, with adjustment to the account New Balance.
For a profit position
- Buy Open one lot at $18.00
- Closing price, $20.00
- Floating profit/loss: +$2,000
- New Balance: $10,000
- Equity: $12,000
- New front month contract price, $25.00
- Floating profit/loss: +$7,000
- Equity: $12,000
- New Balance: $5,000
For a losing position
- Buy Open one lot at $18.00
- Closing price: $20.00
- Floating -$2,000
- New Balance $10,000
- Equity: $8,000
- New front month contract price, $25.00
- Floating profit/loss: -$7,000
- Equity: $8,000
- New Balance: $15,000