Futures are traded on exchanges, which standardise each contract’s terms. Listed oil futures are either settled physically or via a cash payment. When settled physically, actual barrels of oil are delivered – we don’t offer this. When settled via a cash payment, the difference between the future price and the spot market price is paid to the relevant party in the contract.
We offer access to US-listed futures on a wide range of markets, such as commodities – including oil – stocks, ETFs and futures options. All this, on an award-winning platform,1 with low commissions, and fantastic trading content from our colleagues at tastylive. Note that listed futures are either physically delivered or financially settled.
We offer over-the-counter (OTC) futures on oil, too. You can take a position using spread bets (forwards only) or CFDs. Again, an award-winning platform1 is all yours. You’ll speculate on the underlying market price, without entering the futures contract yourself and won’t have to deliver or take delivery of any physical barrels of oil. Plus, there are possible tax benefits.2
Remember that trading on leverage carries risk – plus, oil can be an especially volatile market. You should have a solid risk management strategy in place before opening any positions.
