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Financial CFD Markets Explained

We have collated a detailed description of all our financial CFD markets, providing you with detailed market and trade information plus descriptions to explain more about each particular instrument.

Brent Crude, Jan

commodities - BrentCrude
Commodity
10
(Shares only)
1
27/11/2024
0100-2300
0
3(300 if guaranteed)
2
FinancingRate +/- 3.5%
NTR: Contracts % *
0 - 17
.50
17 - 134
2.50
134 - 672
10.00
672 +
25.00
Limited Risk NTR: Contracts % *
0 - 168
10.00
168 +
25.00
Spread Premium: Contracts Multiplier
0 - 129
1
129 - 257
2
257 - 858
4
858 +
20
Monthly

*When placing a new trade the NTR Multiplier is calculated from the mid-point of the current price. E.g. if a share is currently trading at 199.7 – 200.3 with an NTR multiplier of ‘10% of the current price’ then the NTR Multiplier at that time will be 20 (10% of 200). Once you have an open position in a market, if that position is a buy it will be marked to the current bid price and therefore the NTR Multiplier will be calculated from the bid price. If the position is a sell it will be marked to the offer price and therefore the NTR Multiplier will be calculated from the offer price. Please note this means that NTR Multipliers will vary as the price and bid-offer spread of the market moves.

Market Description

Crude oil is the world’s most actively traded commodity and the two most heavily traded contracts on crude oil are the Brent Crude Oil contract and the West Texas Intermediate (WTI) Light Sweet Crude Oil contract.

Brent Crude, or Brent blend, is a combination of oil from 15 different fields in the Brent and Ninian systems in the North Sea. Although it could be said the oil is ‘light’ and ‘sweet’, it is not thought of as ‘light’ or as ‘sweet’ as West Texas Intermediate. It is ideal for making gasoline and middle distillates, both consumed in large quantities in Northwest Europe.

Brent Crude gets its name from the naming policy of operating companies, which originally named its fields after birds and in particular the Brent Goose. Brent Crude is generally considered as the major benchmark for other crude oils in Europe or Africa and prices for other crude oils are often based on a differential to Brent.

It is traded on the electronic Atlanta-based Intercontinental Exchange Inc. (ICE), previously known as the Board of Trade of the City of New York (NYBOT).

Spreadex quotes Brent Crude in cents (as opposed to Light Crude which is quoted in dollars and cents) and you trade per cent movement meaning it can be a fairly volatile market for CFD trading with regular intra-day movements of 100 – 150 points.

When CFD trading on oil, there are several factors to consider which can have a key influence on the price. These include the supply of oil including stockpiling and any potential bottlenecks in production, including those implemented by oil producers to force price rises. The demand for oil, such as during summer when people may be more likely to use their cars or during winter when heating is turned up, should be taken into account. As Brent Crude’s price is quoted in US dollars, any fluctuations in the value of the American currency can also influence the price of Brent Crude.

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