More on Oil and Commodities Futures Trading
Futures are financial contracts used for trading a fixed amount of a commodity or financial instrument at a pre-determined price at a future date.
Futures contracts are derivatives of various asset types, ranging from traditional commodities such as corn, wheat, and orange juice to government bonds, interest rates, energies and stock indices. These contracts are standardised to facilitate trading on futures exchanges and specify the type, unit price, amount and quantity of the underlying asset.
The futures market is one of the most active and liquid marketplaces worldwide, providing tight spreads and low trading costs. Futures trading is closely regulated by the different exchanges and the detailed nature of futures contracts helps promote transparent pricing. Clients should note that there is no physical delivery when trading oil or commodities futures through a Saxo Capital Markets trading account.
Commissions for oil and commodities futures trading are based on volume, decreasing with the amount traded. Prices as low as USD 0.30 per contract are available for large monthly trading volumes.