5 Reasons to Trade Micro Crude Oil Futures


NinjaTrader Blog

CME Group’s Micro Crude Oil Futures offer you the ideal opportunity to experience the benefits of trading oil futures at a reduced cost. With a smaller contract size, more traders can now take advantage of the leverage and liquidity of one of the largest commodity markets.

Watch this short video to learn more about the benefits of trading Micro Crude Oil Futures.

Lower financial commitment

At 1/10 the size of the standard contract, the financial exposure to trading micro-crude oil futures is greatly reduced.

While full-size crude oil futures have a contact value of $ 10 per tick and $ 1,000 per point, micro-crude oil futures have a tick value of $ 1 and a point value of $ 100.

Increased flexibility

Because of their smaller size, Micro Crude Oil Futures offer more granularity and lower margin requirements. For example, you can now trade 5 micro crude oil contracts, which would be half the contract size of the standard crude oil (CL) future. That way, you can start small and increase your trading volume as you gain experience.

Trade around the clock

While stocks or ETFs have limited trading hours, Micro Crude Oil trades 23 hours a day, 6 days a week. This offers more opportunities to trade futures as the day progresses.

Heavily leveraged investment

As with other futures contracts, Micro Crude Oil is a heavily leveraged investment. By using margin, you can control a large contract value with a smaller capital amount.

Please Note: Financial leverage can result in losses in excess of the initial margin and traders should take appropriate measures to minimize risk when trading unpredictable markets.

Tax benefits

In addition, trading Micro Crude Oil Futures can offer significant tax benefits when compared to other asset classes such as ETFs or stocks.

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