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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

Onyx Markets Uncategorised FAQ for Trading Global Oil Contracts on Onyx Markets

FAQ for Trading Global Oil Contracts on Onyx Markets

Trade with the world's #1 oil derivatives liquidity provider

Welcome to Onyx Markets! Below, you will find a comprehensive FAQ designed to assist retail investors and former industry professionals in understanding our global oil contracts. We aim to make trading straightforward and accessible for all clients, whether trading for the first time or transitioning from industry roles.

1. What Types of Oil Contracts Are Available on the Onyx Markets Platform?

We offer a wide range of global oil contracts to cater to various industries and trading strategies. These include:

  • 0.5 Bge, 0.5 Sing, and related Cracks/Spreads
  • EBOB, Jet CIF N.W.E., Mogas Arb, and related spreads
  • Brent/Dubai, Dubai Spreads, DFLs, DFL Rolls, and Brent/Dubai Box
  • Dated Brent Spreads, Sing 380/180 and Cracks/Spreads
  • N.W.E. Naphtha, N.W.E. Naphtha Cracks/Spreads
  • MOPJ, MOPJ Spreads, Naphtha East/West
  • Sing Kero, Sing Kero vs Sing 10ppm gasoil
  • FEI, FEI/MOPJ, Pro/Nap, C3 CP, C3 FEI, and C3 N.W.E. Spreads

For a full list, please refer to the table in our Oil Contract Specifications.

2. What Trading Methods are Available?

We offer Contracts for Difference (CFDs) and Spread Betting (SB) options. Both methods enable leveraged trading, but their calculations and lot sizes differ.

3. How Are the Calculations Different Between the Underlying Market, Cfds and Spread Bets?

Underlying Market
  • Contracts are priced in $ per MT (metric tonne) or BBL (barrel).
  • Tick value: $10 per $0.01 price movement.
  • Lot size: 1KT (1,000 tonnes) / 1KB (1,000 barrels).
CFDs
  • Designed to resemble the underlying market closely.
  • Contracts are priced in $ per MT (metric tonne) or BBL (barrel).
  • Tick value: $1 per $0.01 price movement.
  • Lot size: 0.1KT (100 tonnes) / 0.1KB (100 barrels).
Spread Bets
  • Always denominated in USD.
  • Tick value: $1 per $0.01 price movement.
  • Lot size: 0.1KT (100 tonnes) / 0.1KB (100 barrels).
Standardised Lot Sizes

To simplify trading, both CFDs and Spread Bets will use a standardised lot size of 0.1KT/0.1KB. This ensures consistency across both products, with a smaller lot size than the underlying market to facilitate more accurate hedging.

4. Are There Any Exceptions to the Standardised Lot Sizes?

The only exception is the Mogas Arb contract:

  • CFD lot size: 0.1KT with a tick value of $3.50.
  • Spread Bet: $3.50 per point to replicate 0.1KT.

5. What is the Minimum Trade Size for Each Market?

The minimum trade size remains the same across both CFDs and Spread Bets and depends on the specific contract. Please refer to the Contract Specifications Table for details on minimum sizes.

6. How Do Tick Values Work?

Tick value represents the monetary value of a single tick (price movement). For example:

  • Underlying Market Example: 1 tick = $10 for a $0.01 price movement with a 1KT or 1 KB lot size.
  • CFD and Spread Bet Example: 1 tick = $1 for a $0.01 price movement with a 0.1KT or 0.1 KB lot size.

7. How Do I Transition from Industry Experience to Trading These Contracts?

If you’re familiar with physical or paper oil markets, our platform’s CFD and Spread Bet contracts mirror these markets closely. However, due to the differences in lot sizes and calculations, we recommend:

  • Starting with smaller trades to familiarise yourself with the mechanics.
  • Consulting the Contract Specifications Table for detailed tick values and lot sizes.

8. What Tools Are Available to Help Me Trade?

Onyx Markets provides:

  • Real-time market data to track price movements.
  • Risk management tools, including stop-loss and take-profit orders.
  • Educational resources, such as webinars and guides.
  • Access to our customer support team for any queries.

9. Are There Risks Involved in Trading These Contracts?

Yes. Leveraged trading carries significant risks, including the potential for losses exceeding your initial investment. Ensure you understand:

  • The contract specifications.
  • The impact of leverage.
  • Market volatility.

We recommend reading our Risk Disclosure before trading.

10. Where Can I Find More Information?

  • Oil Contract Specifications Table
  • Contact our Customer Support Team

If you have any additional questions, please don’t hesitate to reach out to our team via live chat, email, or phone.