- New Oil Instruments
- Why 100 USD value is added?
New Oil Instruments
As oil continues to fall, FXPrimus runs the risk of seeing negative values for oil and a possible trade holt.
To avoid the likelihood of this, FXPrimus has introduced two new Oil Instruments to trade: USOILsp100 and UKOILsp100.
FXPrimus’s new Oil Instruments will have $100 added to the running price to decrease the likelihood of the price going into negative values.
This allows sellers the opportunity to make more profit if the price continues to fall, while buyers will have better control over their positions.
Why 100 USD value is added?
Following last month’s historic crash when WTI crude oil futures contracts for May, dropped below $0, we have entered a new era in oil trading, where negative prices are a possibility.
At FXPrimus, you are safeguarded with the pioneering new products: the US Oil Index and the UK Oil Index, which are specially designed to help you combat negative oil prices and they are available in your FXPrimus’s trading account right now.
How do the US and UK Oil Indices work?
It’s simple, each index is an independent tradable product, but its price is re-based at $100.
This means the price of each index is always $100 higher than the price of oil.
The US Oil Index is linked to the price of WTI and the UK Oil Index is linked to the price of Brent.
How do they help in combating negative oil prices?
If the price of oil drops below $0 again, the corresponding product will remain above $0 because of the $100 offset.
For example if the price of Brent drops to $-5, the price of the UK Oil Index will be $95.
How can you trade the US and UK Oil Indices?
You can find each of the products in your trading platform.
You can speculate on their price movements taking into account the same fundamental and technical indicators used for oil.
When trading the US Oil Index and the UK Oil Index, you can use all FXPrimus’s risk management tools including Negative Balance Protection, stop loss and take profit and autochartist.
FXPrimus runs various bonus promotions that you can get to support your trading activity.
For the list of FXPrimus’s bonus promotions, visit the page here.