Trading energy commodities with Easy-Forex

Easy-Forex ® offers Day Trading in energy commodities as it also does with Gold and Silver Trading. However, unlike these commodities, energy commodities have some peculiarities as they trade predominantly over the exchanges and there is not a liquid continuous spot market.

Trading energy commodities

Online commodities trading at Easy-Forex ® is performed as OTC (Over the Counter) trading which means that the transaction is performed directly between the two parties involved - the buyer and the seller. There is no third party involved like in an exchange market and it is cash settled; (non-delivery trading) the physical purchase or sale of the commodity is not actually performed.

Expiration of Oil Positions / Online Oil Trading Deals

Unlike Day Trading deals in forex currency trading, all open energy commodity day trades expire on a specific date each month regardless of the opening time and date of the deal. To see the expiration of each commodity offered by Easy-Forex ® go to each product's specific page found in the commodities articles section in the Learn centre of the site. Click here to view trading hours.

Rollover of Commodity deals to the new contract

Easy-Forex ® does not rollover expiring deals to the new contract, unless notified beforehand. The client should directly contact his dealer or ASM one working day before expiry of deal for renewal. Client should note that in the case of renewals, Easy-Forex ®

will not carry the profit or loss to the new deal.

If instructed to, as soon as the old deal is automatically closed, a dealer will open a new deal expiring in the new month that follows the expired deal with the same amount and type of the closed deal. The remaining margin on the expired deal will be placed on the new one, unless the client instructs the dealer otherwise. The opening rate of the new deal will be done at the new month's rate.

Using an OIL / USD deal as an example: at expiry time 12:00 GMT the old contract closing price was at USD35.50 per barrel and the new contract price is trading at $ 40.50. At expiry, the old deal will be closed automatically at $ 35.50. Any profit or loss will be reflected in the margin and thus in the free balance. If instructed, the dealer will open a new deal at a price of $ 40.50 (the price of the new contract at 12:00 GMT), and place an amount equal to the remaining margin on the old deal, unless instructed otherwise.