Heating oil is produced from the refining of crude oil. The refining of crude yields 50% gasoline and 25% heating oil. This product of crude oil is also called distillate or Number 2 oil. In Europe, heating oil is called gas oil.
Heating oil is used primarily to heat homes in Northeast America. The US produces roughly 85% of its heating oil and imports the rest from Canada, Venezuela and the Virgin Islands. The production of heating oil generally increases in winter to ensure sufficient supply of oil to meet the seasonal demand. Heating oil futures are traded on the New York Mercantile Exchange (NYMEX) and on the ICE Europe Exchange.
Heating Oil Futures: How Weather Impacts Price
Thursday, January 27, 2011
Mid East Sour Crude Futures
East sour crude is the type of oil that is extracted from the Middle East countries, such as Saudi Arabia, Kuwait, Iran and Iraq. This region has more than 60% of the world's proven oil reserves. The distinctive feature of this crude oil is that it is high in sulfur and other impurities. As a result, East sour crude is difficult to refine into various distillate products, especially unleaded gasoline.
East Sour Crude Futures: Basics
East sour crude futures are standardized contracts in which a buyer agrees to take delivery of a specific quantity of sour crude oil at a predetermined price and date from the seller. The East sour crude futures market enables traders to:
hedge against adverse movements in oil prices. Companies and even individuals can benefit from hedging
speculate on the movement of East sour crude oil prices. Crude oil futures are extremely popular among big financial institutions and retail traders alike.
East Sour Crude Futures: Trading
Trading of the Middle East sour crude futures takes place at the Intercontinental Exchange (ICE). The ICE launched this derivative on May 21, 2007.
Low liquidity
East Sour Crude Futures: Basics
East sour crude futures are standardized contracts in which a buyer agrees to take delivery of a specific quantity of sour crude oil at a predetermined price and date from the seller. The East sour crude futures market enables traders to:
hedge against adverse movements in oil prices. Companies and even individuals can benefit from hedging
speculate on the movement of East sour crude oil prices. Crude oil futures are extremely popular among big financial institutions and retail traders alike.
East Sour Crude Futures: Trading
Trading of the Middle East sour crude futures takes place at the Intercontinental Exchange (ICE). The ICE launched this derivative on May 21, 2007.
Low liquidity
The Basics of Brent Oil Trading (BRT)
Brent oil is the light, sweet crude sourced from the North Sea. This crude oil was named 'Brent' after the Brent goose, as the oil exploration company Shell Oil had a policy to name its fields after birds. This crude oil is also known as Brent petroleum, Brent blend and London Brent and is used as a benchmark to price two thirds of the world's internationally traded crude oil supplies. Thus, when an economist mentions the price of oil, there is a high probability that they are quoting the cost of a barrel of Brent oil. This price is based on deals in the London-based Brent market, which is an informal arena where about $100 billion worth of oil contracts are traded each year.
Characteristics of Brent Oil
The following are the characteristics of Brent oil:
Characteristics of Brent Oil
The following are the characteristics of Brent oil:
Trading Commodities online with Easy-Forex®
Trading commodities on the Visual Trading™ platform is as simple and straight forward as it is to trade currencies. Easy-Forex® offers a number of commodities which are traded differently to currencies.
Energy Commodities
Energy Commodities traded with Easy-Forex® include, WTI Crude Oil, Brent Crude, Gas Oil and Heating Oil. These commodities are traded by investors for a number of reasons, including hedging, investing and speculating. On a large scale, energy commodities are traded by energy companies and consumers to hedge themselves against rising or falling prices.
Commodities are usually traded using futures contracts. A futures contract is a contractual agreement,
Energy Commodities
Energy Commodities traded with Easy-Forex® include, WTI Crude Oil, Brent Crude, Gas Oil and Heating Oil. These commodities are traded by investors for a number of reasons, including hedging, investing and speculating. On a large scale, energy commodities are traded by energy companies and consumers to hedge themselves against rising or falling prices.
Commodities are usually traded using futures contracts. A futures contract is a contractual agreement,
Leveraged Forex Trading
What is leverage in Forex trading?
Traders in Forex trade a contract of currency exchange rates. As the movement of currency rates can be very small, traders use leverage to increase their profit potential.
Here is a step-by-step, practical example:
You decide to open a contract for trade and it has these elements in it:
The currency pair for trading – e.g. EUR/USD
The direction of the trade - BUY euro and SELL US dollars
The price - say 1.3500
The contract value - EUR 100,000
As the trader, you purchase this contract, believing you will profit once you close (offset) the contract.
If you are right (for example: the rate increased to 1.3600), then you would profit: for every euro in this contract you made profit of 1 US cent. In total, the profit would be $1,000 (100,000 x 1 cent).
Traders in Forex trade a contract of currency exchange rates. As the movement of currency rates can be very small, traders use leverage to increase their profit potential.
Here is a step-by-step, practical example:
You decide to open a contract for trade and it has these elements in it:
The currency pair for trading – e.g. EUR/USD
The direction of the trade - BUY euro and SELL US dollars
The price - say 1.3500
The contract value - EUR 100,000
As the trader, you purchase this contract, believing you will profit once you close (offset) the contract.
If you are right (for example: the rate increased to 1.3600), then you would profit: for every euro in this contract you made profit of 1 US cent. In total, the profit would be $1,000 (100,000 x 1 cent).
Pips and spreads
Pips and spreads show the value of a currency pair to the investor and to the broker.
What is a pip?
A pip is a number value. In the Forex market, the value of currency is given in pips. One pip equals 0.0001, two pips equals 0.0002, three pips equals 0.0003 and so on.
One pip is the smallest price change that an exchange rate can make. Most currencies are priced to four numbers after the point. For example, a five pip spread for EUR/USD is 1.2530/1.2535.
What is a pip?
A pip is a number value. In the Forex market, the value of currency is given in pips. One pip equals 0.0001, two pips equals 0.0002, three pips equals 0.0003 and so on.
One pip is the smallest price change that an exchange rate can make. Most currencies are priced to four numbers after the point. For example, a five pip spread for EUR/USD is 1.2530/1.2535.
Real Time Foreign Exchange Software
Online foreign exchange occurs in real time. Exchange rates are constantly changing, in intervals of seconds. Thus, an online Forex system operates in real time. That means that quotes are accurate at the very moment they are displayed, and in 10 seconds or less a different rate may be quoted. Also, when a user locks in a rate and executes a transaction, that transaction is immediately processed and the exchange/trade has been executed.
Up-to-date exchange rates
As exchange rates change so rapidly, any Forex software must display the most up-to-date rates to the user. That means that Forex software is continuously communicating with a remote server that provides the current
Up-to-date exchange rates
As exchange rates change so rapidly, any Forex software must display the most up-to-date rates to the user. That means that Forex software is continuously communicating with a remote server that provides the current
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